MICROCAPITAL BRIEF: Equator’s Shore Capital Fund III Raises $15m from AfDB to Invest in Financial Inclusion in Africa

The African Development Bank (AfDB), a multilateral institution providing loans and grants to governments and private companies in Africa, recently agreed to invest USD 15 million in Shore Capital Fund III, which is managed by Equator Capital Partners LLC, a US-based “impact” fund manager, with the goal of “expand[ing] access to affordable and responsible financial products and services for the underserved market.” Equator plans to invest an “average ticket size of USD 8 million” in approximately 15 “small business banks (SBBs), microfinance institutions (MFIs), insurance providers, leasing companies, housing finance companies and financial technology providers.”

Based in the city of Chicago, Illinois, Equator has invested in 21 financial institutions in 25 countries through two investment funds, ShoreCap International Limited, which closed in 2014, and ShoreCap II Limited. As of March 2016, ShoreCap II has USD 80.3 million in committed capital. Shore Capital Fund III is the first of the fund series to focus exclusively on the African continent.

TheAfDB Group was founded in 1964 and provides loans and grants to governments and private companies in Africa. It consists of three entities: AfDB, the African Development Fund and the Nigerian Trust Fund. Owned and funded by its member governments, the bank has a mandate to reduce poverty and promote “sustainable development”. As of December 2016, AfDB is held by shareholders in 54 African nations and 26 non-regional member countries across the world. Also as of December 2016, AfDB has invested USD 96 billion.

By Jacob O’Driscoll, Research Associate

Sources and Additional Information

AfDB approves $15 million equity investment in Shore Capital Fund to support inclusive growth


Equator Capital Partners

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