CardinalStone Capital Advisers (CCA) has successfully achieved a first close of $76 million for its second fund, the CCA Growth Fund II. This new fund is strategically positioned to inject vital capital into small and medium-sized enterprises across key West African markets. The milestone highlights strong investor confidence in the region's growth potential and CCA's ability to foster impactful business development.
A Strategic Focus on West African Growth
The CCA Growth Fund II will concentrate its investment activities in promising West African economies, with Nigeria, Ghana, Côte d’Ivoire, and Senegal as anchor countries. Its primary mission is to identify and partner with high-potential businesses that are poised for significant expansion. This targeted approach aims to address the critical need for long-term growth capital in the region's most dynamic sectors.
Small and medium enterprises are widely recognized as the primary drivers of job creation and economic diversification in West Africa. However, many of these businesses struggle to secure the patient capital required to scale their operations and innovate. CCAGF II is designed to bridge this funding gap, providing entrepreneurs with the resources needed to unlock their full potential.
Diverse Investor Coalition Signals Confidence
The fund's first close attracted a robust and diverse group of global and local investors, underscoring strong market confidence. Returning limited partners include prominent development finance institutions such as the International Finance Corporation (IFC) and British International Investment (BII). Their continued support, alongside that of SCM Capital, validates CCA's investment thesis and track record from its first fund.
A significant feature of this fundraising milestone is the strong participation from new domestic institutional investors. Nigerian pension funds, including Stanbic IBTC Pension Managers, Access ARM Pensions, and FCMB Pensions, have committed capital to the fund. They are joined by new international backers like the Dutch Good Growth Fund, creating a powerful blend of local insight and global capital.
The Role of Development Finance Institutions
According to Farid Fezoua of the IFC, this investment is crucial for closing the capital access gap for West Africa's SMEs. He emphasized that connecting high-potential businesses with funding and support is essential for scaling operations and creating jobs. This initiative is expected to drive significant economic opportunity and sustainable development throughout the region.
Sara Taylor from BII echoed this sentiment, noting that the fund aligns with BII's strategy to mobilize private capital for development. She described the launch as a milestone demonstrating how DFIs can collaborate with private institutions to channel investment where it is most needed. BII remains committed to partners like CCA who are vital drivers of local business growth and impact.
Leadership and Vision for Impact
The fund is managed by CCA partners Femi Ogunjimi, Yomi Jemibewon, and Shirley Somuah, who expressed their commitment to the region. They stated that this first close enables them to continue partnering with exceptional entrepreneurs to build transformative businesses. Their vision is to scale companies that not only generate returns but also drive meaningful change across West Africa.
The partners extended their gratitude to both returning and new investors for their trust and support. They particularly highlighted the strong participation from Nigerian pension funds and asset managers as a positive development for the local ecosystem. CCAGF II is positioned to make impactful investments that deliver both superior returns and lasting economic benefits.
In summary, the $76 million first close of the CCA Growth Fund II marks a significant step forward for private equity investment in West Africa. With a clear strategy, strong leadership, and the backing of a diverse investor base, the fund is poised to make a substantial impact. By empowering the region's most promising enterprises, CCAGF II will play a key role in fostering innovation, creating jobs, and driving sustainable economic growth.