Spark+ General Partner has proudly disclosed updates on the subsequent funding phases of the Spark+ Africa Fund, which has now amassed an impressive Asset Under Management (AUM) figure of $64 million USD. The fund stands out as an innovative trailblazer, being the first of its kind to focus on impact lending geared towards the expansion of the clean cooking industry throughout sub-Saharan Africa.
In detail, Spark+ successfully executed its second fundraising round in July of 2022, receiving a significant financial boost from the European Commission. The European Commission’s investment was notably allocated to the fund’s catalytic tier, facilitated through a cooperative agreement with the Danish International Development Agency (IFU). It’s worth noting that IFU not only played a role in this partnership but also contributed as an initial investor in its own right during the fund’s inaugural funding cycle.
Subsequently, Spark+ achieved another milestone with its third funding phase in September of 2023. This phase was marked by the participation of the US International Development Finance Corporation (DFC), an American government-affiliated development finance entity. The DFC’s capital was directed into the senior debt layer of the fund.
These later rounds of investment were bolstered by the participation of four additional investors and added to the backing provided by a consortium of 12 other supporters, which comprise various development finance institutions, philanthropic foundations, affluent family enterprises, and retirement funds. That collection of investors initially pledged $41 million USD to the fund in its first round back in March 2022.
Xavier Pierluca, the Chief Investment Officer of Spark+ and a Managing Partner at EQ, expressed delight and gratitude in having the support of such reputable and dedicated partners. He emphasized the importance of their investment across the diverse tranches within Spark+’s strategically structured financial framework. Pierluca is confident that their substantial commitments play a critical role in hastening the execution of the fund’s deployment tactics across the targeted geographical region.
