UAE’s state-owned holding company Mubadala Investment Company (Mubadala) has entered into an agreement with French national investment bank Bpifrance to launch a new co-investment partnership dedicated to African private equity.
The agreement, which was confirmed on the occasion of the 13th session of the UAE-France Strategic Dialogue, will facilitate the deployment of up to $414.73 million through fund and direct investments in private equity and venture capital, with a focus on high-growth African startups, SMEs and mid-caps.
The duo has had a strong relationship since the launch of the French Emirati Fund in 2014 and the Innovation Partnership in 2017 with nearly $1.18 billion of joint investments in French companies (directly and through funds), and a $1.18 billion commitment by Mubadala into Bpifrance’s flagship Lac1 Fund dedicated to listed French multinationals.
Through the new initiative, both firms will make joint investments in top-tier African private equity and venture capital funds, with a focus on regional, multi-country and pan-African funds and fund managers with a proven track record, building upon the expertise and network of Bpifrance.
The program is an extension of France and the United Arab Emirates commitment made along with 45 other countries and institutions to working collectively towards a post-COVID economic recovery in Africa, including through tailored support for entrepreneurs and SMEs, during the Summit on the Financing of African Economies held on May 18th.
Sharing his view on the joint initiative, Mr. Nicolas Dufourcq, Chief Executive Officer of Bpifrance, stated that “We are thrilled to announce we will start working with our long-time partner Mubadala in neighboring Africa, where Bpifrance has been active over the past 20 years through a pioneering fund of funds program. We are more convinced than ever of the tremendous potential of Africa’s private sector and of the pivotal role that African private equity will play in uncovering and empowering industrial and tech champions throughout the continent. We hope more of our international partners will join us on this exciting African journey.”
“Over the years, we have developed a strong relationship with Bpifrance and have successfully invested or committed approximately EUR 1.5 billion in more than 15 investments in France. We are excited to extend this partnership into Africa, a market which we believe has significant untapped potential, and to invest alongside them in high-growth companies.”
Bpifrance has been investing in Africa for over 20 years through a dedicated fund of funds program, Averroès. The Averroès team manages a portfolio of 21 private equity and venture capital funds and over 150 underlying companies, startups, SMEs and mid-caps – based out of 40 African countries. It recently launched a fourth fund of funds, Averroès Africa, with a target size of $118.5 million.