Impact investment firm Goodwell Investments has launched a new EUR50 million (US$60 million) fund that will channel capital from private investors, family offices and foundations to fast-growing, scalable small and medium-sized companies.
The latest Goodwell Investments fund – Goodwell V – is a new multi-sector private equity fund focused on inclusive growth and sustainable development in Africa, and the cornerstone feeder for a new institutional fund the company plans to launch in the second half of this year.
The firm’s local teams in Nigeria, Kenya and South Africa have made more than 20 investments across Africa over the last five years, successfully balancing substantial social impact with delivering a market rate of return to investors.
Goodwell V will build a new portfolio of companies across various sectors in Africa. At least one-third will be invested in financial inclusion, a quarter in agriculture, and the remainder in mobility and other impact sectors such as education and healthcare. The fund will also allocate follow-on funding to existing portfolio companies, such as Copia, MFS Africa, Good Nature Agro, Tomato Jos, and Nomanini.
“We are convinced that businesses led by local entrepreneurs are the key drivers of inclusive growth in Africa. Therefore, the path to inclusive growth in Africa is to support early-stage companies who are best positioned to solve critical challenges in their communities. Our portfolio companies are showing average revenue growth of over 50 per cent per annum,” said Goodwell director of communications Nico Blaauw.
“They have been able to withstand the perils of the pandemic by doing what they do best: providing access to essential products and services like food, transport, healthcare, and financial services. We are excited to continue the journey.”