Investisseurs & Partenaires (I&P), a prominent impact investor focused on African SMEs, has announced the first close of its third flagship fund, I&P Afrique Entrepreneurs 3 (IPAE 3), at €41m ($47.6m).
The firm, which has offices across seven African cities and Paris, is aiming for a total fund size of €70m ($81.2m). A second close is scheduled for the second half of 2026.
The fund is the successor to IPAE 1 and 2 and continues the firm’s strategy of targeting the “missing middle” — companies requiring financing between €1m and €5m. This segment is often considered the most difficult to fund in African markets, as ticket sizes are too large for microfinance and venture capital seed funds, yet too small to attract large international private equity firms.
The Backers and Structure
The first close was led by I&P’s historical limited partners (LPs), consisting entirely of Development Finance Institutions (DFIs). The round included:
- The European Investment Bank (EIB)
- The West African Development Bank (BOAD)
- Bpifrance
- Proparco (via its FISEA initiative)
Notably, the fund structure includes a de-risking mechanism designed to attract capital to volatile markets. With support from the European Commission’s EFSD+ program, FISEA provided a €7m junior catalytic tranche. This first-loss capital is intended to improve the risk profile of the vehicle, potentially encouraging private or more risk-averse investors to join subsequent closings.
In addition to the investment capital, the fund has secured a €1.2m technical assistance facility, funded by the French Ministry for Europe and Foreign Affairs and the EU. This facility will be used to bring in operational and strategic experts to support portfolio companies.
Investment Thesis
IPAE 3 will deploy minority equity and quasi-equity tickets into 15 to 20 SMEs. The geographic mandate is specific, prioritizing West Africa and Madagascar, regions where I&P maintains its strongest physical presence.
The fund is sector-agnostic but focuses on “essential” industries, including:
- Agribusiness
- Energy
- Financial services (Fintech)
- Education
- Health
The fund is managed by a co-leadership team based on the continent: Mialy Ranaivoson (Antananarivo) and Ben Kouakou (Abidjan).
Impact Metrics and Climate
I&P has outlined specific ESG targets for the new vehicle. The fund claims it will align 100% of its portfolio with the 2X Challenge (a global standard for gender-lens investing), targeting at least 30% women-owned or led businesses.
On the climate front, the fund has introduced a decoupling metric, aiming for a divergence of at least 15% between a portfolio company’s revenue growth and its carbon emissions growth. At least 60% of the portfolio is expected to provide direct climate mitigation or adaptation solutions.
The Track Record
IPAE 3 builds on 12 years of activity through its predecessor funds. According to data released by the firm, the IPAE vintage has:
- Invested €146m to date.
- Backed 56 SMEs (68% of which are in Least Developed Countries or fragile states).
- Completed 17 exits.
- Supported over 9,000 jobs since 2018.
While specific Internal Rates of Return (IRR) for the previous funds were not disclosed in the announcement, the continued backing by major DFIs suggests the financial performance has met institutional benchmarks for the asset class.
What’s Next
I&P will now move into the deployment phase while simultaneously fundraising for the final close. The firm indicated that due diligence for new potential LPs is ongoing, with a target to wrap up the fund at €70m in late 2026.