Mubadala Investment Company has signed an agreement with BPIfrance to launch a new co-investment partnership dedicated to African private equity.
On the occasion of the 13th session of the UAE-France Strategic Dialogue, the two companies said they will aim to deploy up to EUR350 million ($416 million) through fund and direct investments in private equity and venture capital, with a focus on high-growth African start-ups, SMEs and mid-caps.
Bpifrance and Mubadala have built a strong relationship since the launch of the French Emirati Fund in 2014 and the Innovation Partnership in 2017, with approximately EUR1 billion of joint investments in French companies and a EUR1 billion commitment by Mubadala into Bpifrance’s flagship Lac1 Fund dedicated to listed French multinationals.
Now, the two partners intend to make joint investments in top-tier African private equity and venture capital funds, with a focus on regional, multi-country and pan-African funds and fund managers with a proven track record.
The initiative comes after France and the UAE committed, alongside 45 other countries and institutions, to working collectively towards a post-Covid economic recovery in Africa, including through tailored support for entrepreneurs and SMEs, as part of the Summit on the Financing of African Economies held on May 18.
Nicolas Dufourcq, CEO of Bpifrance, said: “We are thrilled to announce we will start working with our long-time partner Mubadala in neighbouring Africa, where Bpifrance has been active over the past 20 years through a pioneering fund of funds program.
“We are more convinced than ever of the tremendous potential of Africa’s private sector and of the pivotal role that African private equity will play in uncovering and empowering industrial and tech champions throughout the continent. We hope more of our international partners will join us on this exciting African journey.”
Waleed Al Mokarrab Al Muhairi, deputy group CEO of Mubadala, said: “Over the years, we have developed a strong relationship with Bpifrance and have successfully invested or committed approximately EUR1.5 billion in more than 15 investments in France. We are excited to extend this partnership into Africa, a market which we believe has significant untapped potential, and to invest alongside them in high-growth companies.”
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