E3 Capital and Lion’s Head World Companions have introduced a primary shut for the E3 Low Carbon Financial system Fund for Africa geared toward investing in next-generation low-carbon entrepreneurs in Africa scaling new applied sciences and enterprise fashions enabled by the low carbon financial system.
The fund will spend money on early-stage corporations and maintain vital capital for follow-on in later rounds. The fund has had its first shut at $48.1 million and targets a second and last shut of as much as $100 million inside 12 months.
“We really feel it is a nice time to again low-carbon companies in Africa that are beginning to see potential for substantial scale. The E3 workforce brings distinctive experience working with early-stage corporations throughout the continent and have demonstrated this means with their present portfolio which is beginning to present indicators of clear winners.”– Clemens Calice, Lion’s Head CEO. “We’re excited to again a brand new era of entrepreneurs.”
The fund is backed by KfW (in collaboration with BMZ, the German Ministry for Financial Cooperation and Improvement), FMO, the Dutch entrepreneurial improvement financial institution, Swedfund Worldwide AB (the Swedish improvement finance establishment), and PROPARCO, with a last shut focusing on traders that share the idea within the revolutionary potential of vibrant African entrepreneurs and a dedication to an equitable and resilient world financial system.
The fund will spend money on early-stage corporations and maintain vital capital for follow-on in later rounds. The fund has had its first shut at $48.1 million and targets a second and last shut of as much as $100 million inside 12 months.
E3 Capital and Lion’s Head mixed forces to leverage their respective expertise and footprint in Africa. E3 Capital additionally at the moment manages a €75M fund (EAVF I) investing in decentralized power companies throughout Africa, with 15 investments in East-, West- and Southern Africa. Lion’s Head is a longtime rising and frontier market targeted asset supervisor with over $700 million beneath administration and thru a separate subsidiary gives company finance advisory companies to governments, multilaterals, and personal corporations. Collectively, E3 and Lion’s Head have invested in additional than $400 million in 30 African nations. E3LCEF is a Luxembourg domiciled fund for which Lion’s Head acts as AIFM and E3 Capital as Fund Adviser.
Recognising the significance of native information along with worldwide greatest practices, the funding workforce is predicated in Nairobi. The 2 events are excited to leverage their deep experiences to contribute to the transition to a low carbon financial system in Africa.
“African companies are beginning to emerge with clear product market match and a robust business potential on the core throughout the low carbon financial system. The standard of entrepreneurs we’re seeing is placing. We’re captivated with serving to African entrepreneurs construct the subsequent era of revolutionary companies that innovate, scale and influence the lives of all of us within the coming years.” –Paras Patel, Founder and Managing Accomplice of E3 Capital. “My companion, Vladmir Dugin, and I are grateful for the help we have now acquired from our traders and stay up for partaking with many present and new entrepreneurs within the coming months .”
Stephanie Lindemann-Kohrs, Director of the Fairness Finance Division at KfW Improvement Financial institution, emphasised, ‘With its funding within the E3 Low Carbon Financial system Fund I, KfW is investing as an anchor investor within the first fund of the newly shaped E3 Capital workforce. We’re happy to have the E3 Administration workforce along with Lions Head as very skilled companions with a protracted optimistic monitor file to drive the implementation of the funds’ funding technique. We’re satisfied that the investments of the Fund will make a major contribution in direction of local weather neutrality and local weather justice in Africa”.
Linde Lassche, Funding Officer at FMO talked about, “We’re happy to contribute to the subsequent part of the power transition by anchoring the E3 Fund. The E3 workforce has a information workforce on the bottom with nice networks throughout Africa. They’ve illustrated the potential to seek out gifted entrepreneurs, both in new sector segments (one of many earliest traders in PAYGO photo voltaic and C&I in Africa) and/or in fragile states (Mali, Burkina Faso, Chad). Therefore, they’ve been instrumental for innovation within the power sector in Africa. Moreover, by three co-investments the E3 workforce has additionally confirmed to be an excellent companion for FMO to execute on our direct VC technique. We’re excited to proceed on this journey with them. ”
“Proparco is proud to help E3 LCEF, one of many only a few pioneer traders within the early stage power entry and local weather house in Africa. By means of the FISEA mandate held by AFD, Proparco is a robust supporter of younger African companies that convey revolutionary options, amongst which within the low carbon house.” Natascha Korvinus, Sr. Funding Officer PROPARCO.
“Our dedication to the fund is pushed by Swedfund’s give attention to offering financing to corporations which are lively in high-impact sectors within the low carbon financial system, equivalent to renewable power. Digitalization is one other core focus for us, given the sturdy hyperlink with job creation and progress, and the intersection of digitalization and the low carbon transition in growing nations is of specific curiosity”, says Gunilla Nilsson, Funding Director Power & Local weather at Swedfund.