Inside Capital Partners has successfully achieved the first close of its second private equity fund, Inside Equity Fund II (IEF II), securing $55 million in commitments. The milestone reflects strong support from both existing and new investors, underscoring confidence in the firm’s growth-focused strategy. This development positions Inside Capital Partners to continue its mission of backing high-potential SMEs across Southeast Africa.
Strong Investor Backing from Development Finance Institutions
Returning investors in IEF II include the Dutch Good Growth Fund (DGGF) and Terra Mauricia, one of Mauritius’ largest conglomerates. New participants in the fund feature prominent development finance institutions such as the U.S. International Development Finance Corporation (DFC), the International Finance Corporation (IFC), Swedfund International, Mauritius Investment Corporation (MIC) Ltd, and Belgium’s BIO. The involvement of these global investors highlights the increasing recognition of Southeast Africa’s investment potential and the strategic importance of supporting local enterprises.
Focus on SMEs Driving Regional Impact
Inside Capital Partners specializes in fostering the growth of small and medium-sized enterprises across Zambia, Madagascar, Mauritius, Tanzania, Mozambique, and Malawi. The firm’s first fund, a $35 million vehicle, was fully deployed across six companies operating in renewable energy, waste recycling, packaging, building materials, and hospitality. IEF II will continue this strategy, prioritizing local champions that deliver meaningful social and economic impact within the region.
Leadership Perspective on Regional Growth
Jerome Lagesse, Managing Partner at Inside Capital Partners, emphasized the fund’s long-term vision: “We have deliberately chosen to focus on countries underserved by traditional capital providers, investing in local talent and impactful businesses.” He noted that the enthusiasm from investors demonstrates strong alignment with the firm’s mission and reinforces its position as a catalyst for sustainable development. Lagesse further encouraged entrepreneurs sharing this vision to engage with Inside for potential collaboration opportunities.
Scaling Up Fund II to Maximize Impact
Following its first close, Inside Capital Partners later reached the final close of IEF II at $72.2 million, more than doubling the size of Fund I and bringing total assets under management to $107 million. The final close welcomed British International Investment (BII) as a new limited partner, enhancing the fund’s credibility and reinforcing investor confidence in Inside’s regional strategy. The increased capital base allows Inside to broaden its support for high-potential SMEs and to continue fostering sustainable economic growth across Southeast Africa.
The successful fundraising for Inside Equity Fund II represents a key achievement for Inside Capital Partners, signaling both market confidence and a strengthened capacity to drive development. By backing local SMEs in sectors vital to the region, the firm continues to demonstrate that private equity can be a powerful vehicle for positive change. With committed investors and a proven track record, Inside Capital Partners is well-positioned to scale its impact across Southeast Africa in the years ahead.