E3 Capital and Lion’s Head International Companions announce first shut for the E3 Low Carbon Economic system Fund for Africa

E3 Capital and Lion’s Head International Companions have introduced a primary shut for the E3 Low Carbon Economic system Fund for Africa aimed toward investing in next-generation low-carbon entrepreneurs in Africa scaling new applied sciences and enterprise fashions enabled by the low carbon financial system.

The fund will put money into early-stage firms and maintain vital capital for follow-on in later rounds. The fund has had its first shut at $48.1 million and targets a second and closing shut of as much as $100 million inside 12 months.

“We really feel it is a nice time to again low-carbon companies in Africa that are beginning to see potential for substantial scale. The E3 staff brings distinctive experience working with early-stage firms throughout the continent and have demonstrated this capacity with their present portfolio which is beginning to present indicators of clear winners.”– Clemens Calice, Lion’s Head CEO. “We’re excited to again a brand new technology of entrepreneurs.”

The fund is backed by KfW (in collaboration with BMZ, the German Ministry for Financial Cooperation and Improvement), FMO, the Dutch entrepreneurial growth financial institution, Swedfund Worldwide AB (the Swedish growth finance establishment), and PROPARCO, with a closing shut concentrating on traders that share the idea within the modern potential of vibrant African entrepreneurs and a dedication to an equitable and resilient world financial system.

The fund will put money into early-stage firms and maintain vital capital for follow-on in later rounds. The fund has had its first shut at $48.1 million and targets a second and closing shut of as much as $100 million inside 12 months.

E3 Capital and Lion’s Head mixed forces to leverage their respective expertise and footprint in Africa. E3 Capital additionally at the moment manages a €75M fund (EAVF I) investing in decentralized power companies throughout Africa, with 15 investments in East-, West- and Southern Africa. Lion’s Head is a longtime rising and frontier market centered asset supervisor with over $700 million below administration and thru a separate subsidiary offers company finance advisory providers to governments, multilaterals, and personal firms. Collectively, E3 and Lion’s Head have invested in additional than $400 million in 30 African nations. E3LCEF is a Luxembourg domiciled fund for which Lion’s Head acts as AIFM and E3 Capital as Fund Adviser.

Recognising the significance of native data along with worldwide finest practices, the funding staff is predicated in Nairobi. The 2 events are excited to leverage their deep experiences to contribute to the transition to a low carbon financial system in Africa.

“African companies are beginning to emerge with clear product market match and a robust business potential on the core inside the low carbon financial system. The standard of entrepreneurs we’re seeing is putting. We’re enthusiastic about serving to African entrepreneurs construct the following technology of modern companies that innovate, scale and impression the lives of all of us within the coming years.” –Paras Patel, Founder and Managing Companion of E3 Capital. “My accomplice, Vladmir Dugin, and I are grateful for the assist now we have acquired from our traders and sit up for partaking with many present and new entrepreneurs within the coming months .”

Stephanie Lindemann-Kohrs, Director of the Fairness Finance Division at KfW Improvement Financial institution, emphasised, ‘With its funding within the E3 Low Carbon Economic system Fund I, KfW is investing as an anchor investor within the first fund of the newly shaped E3 Capital staff. We’re happy to have the E3 Administration staff along with Lions Head as very skilled companions with a protracted optimistic monitor file to drive the implementation of the funds’ funding technique. We’re satisfied that the investments of the Fund will make a big contribution in direction of local weather neutrality and local weather justice in Africa”.

Linde Lassche, Funding Officer at FMO talked about, “We’re happy to contribute to the following section of the power transition by means of anchoring the E3 Fund. The E3 staff has a data staff on the bottom with nice networks throughout Africa. They’ve illustrated the aptitude to seek out proficient entrepreneurs, both in new sector segments (one of many earliest traders in PAYGO photo voltaic and C&I in Africa) and/or in fragile states (Mali, Burkina Faso, Chad). Therefore, they’ve been instrumental for innovation within the power sector in Africa. Moreover, by means of three co-investments the E3 staff has additionally confirmed to be an excellent accomplice for FMO to execute on our direct VC technique. We’re excited to proceed on this journey with them. ”

“Proparco is proud to assist E3 LCEF, one of many only a few pioneer traders within the early stage power entry and local weather house in Africa. Via the FISEA mandate held by AFD, Proparco is a robust supporter of younger African companies that deliver modern options, amongst which within the low carbon house.” Natascha Korvinus, Sr. Funding Officer PROPARCO.

“Our dedication to the fund is pushed by Swedfund’s deal with offering financing to firms which are lively in high-impact sectors within the low carbon financial system, comparable to renewable power. Digitalization is one other core focus for us, given the robust hyperlink with job creation and progress, and the intersection of digitalization and the low carbon transition in creating nations is of explicit curiosity”, says Gunilla Nilsson, Funding Director Vitality & Local weather at Swedfund.

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