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Project Summary Note - AFRICINVEST Financial Inclusion Vehicle (FIVE)

31-Jan-2019

The AfricInvest Financial Inclusion Vehicle LLC (“The Fund” or “FIVE) launched by the AfricInvest Capital Partners is an evergreen fund that will invest equity and quasi-equity in African Tier II and III Financial Institutions (FIs) with a focus on innovative solutions for financial services in Sub-Saharan Africa. The aim is to invest in institutions that address the financing gap for African Small and Medium Size enterprises (SMEs) and support them in the framework of their digital transformation. The Fund will focus on growth FIs, which engage in regional expansion, downscaling, upscaling and/ or convergence targeting: Established African mid-size banks and insurance, as well as microfinance and leasing institutions, with priority objective to expand into the unbanked retail and SME segments. The approach will consist in having an active role in governance and strategic planning of investees, albeit minority stake (maximum 15%). In line with the team’s experience and track record, FIVE’s investment portfolio will be spread as follows: 35% in Insurance companies, 35% in Financial institutions supporting SMEs, 20% in Micro-Finance Institutions, and 10% in financial Technology (Fintech) companies

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