Summit Africa, a prominent South African fund manager, has officially launched its Summit Private Equity Fund II (SPEF II), bolstered by a significant anchor investment of $20 million from British International Investment (BII), the UK’s development finance institution and impact investor.
SPEF II is strategically focused on investing in small to mid-market companies within the financial services and information and communication technology (ICT) sectors. The fund aims to promote financial and digital inclusion, foster job creation, and enhance transformation and diversity throughout South Africa and the broader Southern African region. Additionally, food security has been identified as a key investment sector for the fund.
In its fundraising efforts, SPEF II plans to secure an additional ZAR 400 million (approximately $21.7 million) to ZAR 500 million (around $27.2 million) from a mix of local and international institutional investors before it begins deploying capital. The fund has set an ambitious target size of ZAR 2.5 billion (about $136 million).
Leslie Maasdorp, CEO of BII, emphasized the importance of collaborating with impact-aligned fund managers like Summit, stating;
Working with impact-aligned fund managers like Summit is crucial to achieving our goal of delivering development impacts at scale. With its proven track record from the first fund, we are delighted to anchor Summit’s second private equity fund, reinforcing our support for SMEs in key sectors that enhance the livelihoods of people in South Africa and the Southern African region.
Nthabiseng Thema, the fund’s investment lead and partner, expressed gratitude for the backing and commitment from BII.
The fund is thankful for the support and commitment received from BII. This anchor investment highlights the strength of Summit Africa’s investment platform, our dedicated team, our comprehensive ESG and impact strategy, and our capacity to actively collaborate with portfolio companies to achieve their financial and social impact goals. This also represents a vote of confidence in South Africa and the Southern African region as a viable investment destination, particularly in light of the Presidential Investment drive aimed at mobilizing R2 trillion worth of investments in South Africa over the next five years.
