Ghana-based multi-sector fund investor, Injaro Investments Advisors Limited, recently announced the closing of its Ghana Cedi-denominated private equity fund, Injaro Ghana Venture Capital Fund (IGVCF), at GHS 216 million ($17.5 million).
The fund attracted investors such as Venture Capital Trust Fund, Minerals Income Investment Fund Ghana, and several local pension funds including Stanbic Investment Management Services, PETRA Securities, Databank Group, and CAL Asset Management Company Ltd.
The company plans to utilize the fund to invest in leading small and medium-scale businesses (SMEs) in Ghana and Cote d’Ivoire. It is geared towards supporting profitable SMEs in high-growth sectors in Ghana such as mining support services, food and agriculture, education, healthcare, financial services, industrial services, and light manufacturing.
Since its establishment in 2009 by Jerry Parkes and Dadie Tayoraud, Injaro has focused on providing capital to facilitate the expansion of Ghanaian SMEs to stimulate economic growth in Africa. Today, after 14 years in operation, the firm manages $65 million across several funds.
Injaro shared that the IGVCF will allocate essential resources to create job opportunities for thousands in Africa, adding to the existing 3 million beneficiaries of the fund. The company aims to boost Ghana’s economy and support local businesses while safeguarding the financial well-being of the pensioners whose funds it manages.
The investment firm plans to administer the fund through a mix of debt, equity, and quasi-equity instruments to ensure both financial returns and robust growth for its investee companies. To be eligible for investment, companies must have been operational for a minimum of three years and generated at least GHS 20 million in revenue, with a net income (EBITDA) of at least GHS 3.5 million ($281,055).
IGVCF will acquire either a majority or a minority stake in a business depending on that business’ model. Future exits strategies may involve cash flow, sponsor buy-outs, strategic mergers and acquisitions, or Initial Public Offerings.
The fund has already invested its first $2 million in Zeepay’s Series A round. In addition, IGVCF has pledged to foster environmental, social, and governance practices within its portfolio companies to ensure sustainable growth for Africa’s economy.
