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Summit Africa achieves final close on its first private equity fund

The alternative asset management firm’s private equity fund secured R1.6 billion in commitments for long-term investment.

The fund has been approved for the 2X Challenge qualification— a commitment by the development finance institutions (DFIs) of the G7 to mobilise USD15 billion by the end of 2022 toward investments that support women’s economic empowerment in emerging markets.

The fund supports the United Nations Sustainable Development Goals on Good Health and Well-being, Quality Education, Decent Work and Economic Growth and Reduced Inequalities (SDGs 3, 4, 8 and 10).

Summit Africa announced the final close for its impact-focused private equity fund (Summit Private Equity Fund I “SPEF I”), with total commitments of R1.6 billion (USD115 million), exceeding its initial target. With this capital, Summit Africa will target investments in the healthcare, education, financial services, and ICT services sectors in the Common Monetary Area, focusing on partnerships that can actively create jobs and improve access, quality, affordability, diversity and inclusion within the target sectors.

At its final close, SPEF I had received commitments from 10 leading institutional investors, including Thuso Partners, the 27Four Black Business Growth Fund, RisCura (on behalf of various clients), the National Fund for Municipal Workers, and CDC Group, the UK’s Development Finance Institution. A significant milestone for Summit Africa. To date, SPEF I has deployed approximately 20% of its capital in three investments in South Africa, with a fourth investment to be concluded shortly.

Tomi Amosun, the Managing Partner of Summit Africa, said: “The fund is grateful for the support and commitments received towards the final close. This successful close demonstrates the strength of Summit Africa’s investment platform, our team, our fully integrated ESG and impact strategy, and our ability to work actively with investee companies to meet their financial and social impact objectives. For private equity investors, the ongoing Covid 19 pandemic has reinforced the importance of ensuring long-term social sustainability while stimulating economic activity in a truly inclusive manner. This firmly aligns the fund to the objectives of the UN Sustainable Development Goals and the South African government’s National Development Plan.”