Phatisa, a sector-focused private equity firm, has officially reached an $86 million first close for its third-generation African food fund, Phatisa Food Fund 3 (PFF 3). This initial capital injection is backed by a powerhouse syndicate of Development Finance Institutions (DFIs) and institutional investors, including:
- British International Investment (BII)
- FinDev Canada
- Norfund (Norway)
- Swedfund (Sweden)
- International Finance Corporation (IFC)
- Phatisa (General Partner commitment)
Investment Strategy and Sector Focus
PFF 3 is designed to capitalize on the success of its predecessors by targeting high-growth opportunities across the African food value chain. The fund seeks to partner with scalable businesses that demonstrate a balance of commercial viability and measurable social impact.
Notably, the fund maintains a strict exclusion of primary agriculture (direct farming), choosing instead to focus on the essential infrastructure and technology that support the industry:
- Upstream (Agri-inputs): Investing in seeds, crop protection, fertilizers, and cutting-edge agri-tech solutions.
- Downstream (Processing & Distribution): Targeting food production, processing facilities, cold chain management, storage, logistics, and retail distribution.
Anchor Acquisition: Zaad Group
To mark the fund’s launch, PFF 3 has finalized an agreement to acquire a significant stake in Zaad Group, a leading African platform specializing in seed and crop protection. This strategic move is a collaborative investment alongside:
- The Zaad management team.
- WIPHold (Women Investment Portfolio Holdings).
- The Public Investment Corporation (PIC).
- The Industrial Development Corporation (IDC).
While the first close secures a solid operational foundation, PFF 3 is entering a period of rolling closes over the next 12 months. The firm is aiming for a final hard cap of $300 million, providing significant dry powder to address the continent’s food security and supply chain needs.
Stuart Bradley, Managing Partner at Phatisa, remarked:
Investing successfully across Africa’s food value chain requires deep local experience, strong partnerships, and disciplined execution. Food Fund 3 builds on over 15 years of sector focus and reflects our ability to… build resilient, representative businesses that deliver both returns and impact.
