The International Finance Corporation (IFC) has announced a proposed commitment of up to $75 million to the Helios Investors V fund, which includes a co-investment envelope of $50 million. This significant financial backing underscores the IFC’s commitment to fostering growth in Africa’s dynamic investment landscape.
Helios V is a pan-African growth equity fund that aims to invest in market-leading companies that are either driving or benefiting from the intersection of technological innovation and Africa’s favorable demographic and urbanization trends. The fund is strategically positioned to capitalize on the continent’s rapid economic development and the increasing demand for innovative solutions across various sectors.
The fund is targeting a total capital raise of $750 million, with plans to invest in 10 to 12 companies. Each investment is expected to have an average ticket size ranging from $70 million to $80 million, excluding any co-investment amounts. This approach allows Helios V to make substantial investments in companies that demonstrate strong growth potential and market leadership.
Helios V will concentrate its investments in several core sectors, including:
- Digital Infrastructure: This encompasses investments in essential components such as data centers, fiber networks, and telecom towers, which are critical for supporting the growing demand for digital services across the continent.
- Financial Services and Financial Technology: The fund will target innovative solutions in bank technology, payment systems, and financial management software, aiming to enhance financial inclusion and efficiency in the region.
- Tech-Enabled Business Services: Investments in this sector will focus on cloud services, regulatory technology (reg-tech), health technology (health-tech), and logistics technology (logistics-tech), all of which are vital for modernizing business operations and improving service delivery.
- Consumer Non-Discretionary: The fund will also invest in essential sectors such as food and beverage, healthcare, and education, which are fundamental to meeting the needs of Africa’s growing population.
Through these targeted investments, Helios V aims to drive sustainable economic growth and create lasting value in the African market, while also aligning with the IFC’s mission to promote private sector investment in developing countries.
