TLcom Capital has announced a first close of $40 million for its TIDE Africa fund

TLcom Capital has announced a first close of $40 million for its TIDE Africa fund, getting commitments from global development finance institutions, corporate investors and family offices

African Development Bank and European Investment Bank jointly accounted for 50% of the commitments, with each investing $10 million in the 10-year fund, which is aiming to provide its investors with a net IRR of 16%.

TLcom is aiming to hit the fund’s target of $100 million in time for its final close in June 2018. The fund aims to invest in businesses that use technology to lower the cost of services to both Africa’s enterprises and consumers alike.

The fund will initially source for opportunities across several sectors including agribusiness, financial services, energy, education and healthcare in Nigeria, Kenya and Ghana. Thereafter it will target similar opportunities in Ethiopia, Rwanda and Zambia.

The fund’s strategy is to invest between $500,000 and $10 million to  take equity stakes in early stage and growth stage businesses that are both scalable have a track record of rapid growth. It’s believed that the fund has a deal pipeline of more than six hundred companies, six of which are investment-ready for the first year of the investment period.

In conjunction with the fund raise, TLcom is also establishing the TIDE Foundation, a non-profit entity which will support the development of local entrepreneurs, allocating 1% of the 20% General Partner carry to entrepreneur education activities in the region.

Maurizio Caio is the Founder and Managing Partner of TLcom Capital LLP while former Minister of Communications, Omobola Johnson is also a partner in the firm.