In the world of African private equity, few names carry as much weight as London-based Development Partners International (DPI). As the firm moves toward its ambitious $1bn target for its fourth flagship fund, African Development Partners IV (ADP IV), it has secured a crucial $42m commitment from Proparco, the French development finance institution (DFI).
The investment, part of the fund’s first closing, signals a continued reliance on DFI “anchor” capital to stabilize the African PE landscape. However, the real test for DPI — and the wider ecosystem — is whether this DFI backing can successfully “crowd in” the private institutional investors who have historically been wary of the continent’s macro volatility.
While much of the venture capital hype in Africa focuses on seed-stage fintech, DPI plays in a different league. ADP IV is targeting mid-to-large cap companies. These are established businesses that form the backbone of the “real economy.”
DPI’s thesis is built on three inescapable trends:
- Urbanization: Africa’s cities are growing faster than anywhere else on earth.
- Digitalization: The leapfrogging of traditional infrastructure via mobile tech.
- The Middle Class: A growing demographic with disposable income and a demand for better services.
Rather than spreading bets thin, the fund plans to build a concentrated portfolio of roughly one dozen companies across North and Sub-Saharan Africa. The focus is on “defensive” yet high-growth sectors: healthcare, education, financial services, and FMCG (Fast-Moving Consumer Goods).
The “Crowding-In” Conundrum
For Proparco, this isn’t just about the $42m check. The goal of DFIs is to act as a “de-risker.” By conducting rigorous due diligence and committing early, they provide a stamp of approval intended to make pension funds and commercial banks more comfortable.
“Our role is about mobilizing private capital,” says Tibor Asboth, Head of Private Equity for Africa and the Mediterranean at Proparco. “This investment reflects confidence in DPI’s ability to back high-growth companies while supporting the expansion of the African middle class.”
However, the “crowding-in” effect remains a challenge. While DPI has a formidable track record — boasting over $3bn in Assets Under Management (AUM) since its founding in 2007 by Miles Morland and Runa Alam — the broader African PE market has seen a dip in private participation over the last 24 months due to currency fluctuations and global interest rate hikes.
It isn’t just about the bottom line. As a condition of DFI participation, ADP IV adheres to strict ESG (Environmental, Social, and Governance) standards.
A key highlight of this fund is its alignment with the 2X Challenge — a set of criteria designed to promote gender-smart investing. This means DPI isn’t just looking for profitability; it’s looking for companies that:
- Have women in leadership roles.
- Provide products or services that specifically benefit women.
- Implement gender-equitable workplace policies.
ADP IV: The Vital Statistics
| Feature | Details |
| Target Size | $1 Billion |
| Focus Geography | Pan-African (North & Sub-Saharan) |
| Investment Stage | Mid-to-large cap growth equity |
| Key Sectors | Fintech, Healthtech, Education, Retail, Logistics |
| Lead Investors | Proparco, IFC, DEG, and various private LPs |
The Bottom Line
DPI’s fourth fund is a litmus test for the “African Growth” narrative. If a firm with DPI’s pedigree can successfully deploy $1bn into the continent’s mid-market, it will prove that Africa is more than just a playground for early-stage startups — it’s a viable destination for massive, institutional-grade scale.
The presence of Proparco provides the safety net, but the growth of Africa’s middle class will be the ultimate engine for the fund’s exit strategy.