International Finance Corporation (IFC) has committed up to the lower of $25m (£18.4m) or 20 per cent of total LP commitment (whichever is lower) to Enko Capital’s new Impact Credit Fund.
The new fund is African-focussed asset manager Enko’s first private credit vehicle, and launches with a target LP commitment size of $150m.
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It is targeting $80m at first close, which is expected to be in the third quarter of this year.
The fund will seek to invest in SDG-aligned, ESG-focused and gender-oriented businesses, while generating commercial returns and utilising guarantees, insurance wraps and collateral to hedge downside credit risks.
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It aims to invest in a diversified portfolio of USD denominated senior secured and unsecured debt to mid-sized companies in sub-Saharan Africa (excluding South Africa).
“We are delighted to have received this invaluable support from IFC for our debut private credit fund”, said Alain Nkontchou, managing partner of Enko. “The fund will provide critical growth capital for mid-market SMEs on the continent and will deliver both positive social impact and compelling risk-adjusted returns.”
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