Proparco has announced a significant investment in the Helios Climate Fund, deepening its strategic partnership with Helios Investment Partners. This commitment is part of the fund's successful second closing, which raised total commitments to approximately USD 250 million. The initiative aims to mobilize crucial private capital to accelerate Africa’s transition to a low-carbon economy and foster sustainable development across the continent.
A Strategic Alliance for Climate Action
This investment reinforces a growing strategic alliance between Proparco and Helios Investment Partners, a leading African private equity firm. Earlier in 2024, Proparco committed USD 20 million to the Helios Sports & Entertainment Group, showcasing a multifaceted partnership. The new climate-focused investment marks a pivotal expansion of this collaboration, directing resources toward pressing environmental and economic needs.
Mobilizing Capital for a Greener Continent
The Helios Climate Fund's second closing at USD 250 million demonstrates strong investor confidence in Africa's green economy. The fund has attracted a powerful syndicate of leading development finance institutions, including the European Investment Bank and British International Investment. This coalition of public and private capital is essential for bridging the continent's significant climate finance gap, where public funding covers only a fraction of the need.
Françoise Lombard, CEO of Proparco, emphasized the fund's critical role in this effort. "The Helios Climate Fund seeks to mobilize private capital for Africa’s climate transition, where needs are immense and opportunities for transformation equally significant," she stated. This partnership supports an ambitious strategy to scale African companies while delivering measurable climate, economic, and social benefits.
The Fund's Investment Blueprint
The fund is set to make significant minority or majority investments in target companies, with ticket sizes ranging from USD 20 million to USD 50 million. Its core focus is on businesses actively contributing to green growth and decarbonization across various sectors. This flexible investment approach allows Helios to support companies at different stages of their growth journey and drive substantial impact.
Managed by a dedicated team with specialized expertise, Helios Climate will target approximately 15 sub-themes crucial for sustainable development. These include advancing affordable renewable energy, promoting sustainable agriculture, and fostering the growth of green mobility solutions. The strategy is designed to build a diversified portfolio of high-impact assets that drive Africa's low-carbon transition.
A Track Record of Pan-African Success
Helios Investment Partners is a distinguished player in the African private equity landscape, renowned for its pan-African large-cap strategy. The firm has a proven track record, having invested over USD 2.5 billion in 39 companies across 35 nations. This extensive experience and deep regional knowledge are critical assets for managing the new climate-focused fund effectively.
The firm's success is underscored by its strong focus on value creation and its ability to generate competitive returns. Its net internal rates of return consistently place it among the continent’s top-performing private equity managers. This financial track record is a key factor in its ability to attract significant capital from global institutional investors for impactful projects.
Aligning Investment with Global Goals
Proparco's commitment is fully aligned with its overarching impact strategy, which prioritizes environmental protection and resilient economic development in Africa. The investment in Helios Climate directly supports these institutional objectives by channeling capital toward tangible sustainable outcomes. It represents a deliberate effort to finance a just and green transition on the continent.
The fund's mission contributes directly to several United Nations Sustainable Development Goals (SDGs), including SDG 13 on Climate Action and SDG 7 on Affordable and Clean Energy. It also supports SDG 8 on Decent Work and Economic Growth and SDG 9 on Industry, Innovation, and Infrastructure. This alignment ensures that financial performance is intrinsically linked to measurable global progress.
This strategic investment by Proparco into the Helios Climate Fund marks a significant step forward in mobilizing private capital for Africa's climate agenda. The partnership leverages Helios's proven investment expertise and a strong syndicate of international backers to address critical environmental challenges. Ultimately, this initiative is poised to accelerate the growth of sustainable businesses, fostering both economic prosperity and climate resilience across the continent.