Jacana Venture Partnership agreed its second partnership with an African private equity fund in December last year. Jacana’s investment in Fidelity Capital Partners Ltd, a Ghana-based fund with a total of $32 million under management, will enable Fidelity to expand its senior team ahead of the planned launch of its third fund in 2012.
Founded in 1999, Fidelity Capital is one of West Africa’s leading SME private equity firms. It currently manages two SME funds with a range of portfolio companies in areas that include agribusiness, microfinance, healthcare, education, IT services, real estate and FMCG (fast moving consumer goods). (The photo below shows a fruit processing production line at one of Jacana’s portfolio companies.)
Jacana will also be providing hands-on management support to both the investment team and their portfolio companies. Jacana CEO Simon Merchant will be seconded to Fidelity for 2011. This new partnership follows Jacana’s initial investment in InReturn Capital, an East African SME investment firm, in early 2010.
Jacana’s overall goal is to contribute to long-term poverty alleviation by stimulating development of the SME sector in Sub-Saharan Africa. It aims to do this by entering into partnerships to develop local private equity fund managers, thus attracting public and private investment to African SMEs. Its founders include Stephen Dawson and Lord Joel Joffe.
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