On 29th of August 2024, the Angola Sovereign Wealth Fund (FSDEA) formalised its entry into the Kimbo Fund, Angola’s debut private debt fund managed by BFA Asset Management (BFAAM), with an equity investment of USD 5 million. This investment will allow BFAAM’s Kimbo Fund to invest in businesses with high growth potential that generate income and are tackling key challenges in the local market aligned with the national economic diversification programme, including downstream agribusiness and logistics.
This equity commitment is expected to also help BFAAM to raise additional capital from other investors including the country’s pension funds, high net worth individuals, insurers, and foreign institutional investors.
Objectives of the Kimbo Fund
With a fundamental objective to support the growth of companies led by young people and women, Kimbo Fund aims to contribute to filling value chains, promote job creation, strengthen financial inclusion, and improve access to financing.
To achieve this, the Fund will primarily invest in the debt components of the capital structure of small to mid-market companies, while providing investors with periodic streams of income through regular payment of distribution while prioritising the preservation of invested capital on a competitive risk-adjusted return basis. Initial investments will be around the USD 250,000-500,000 mark, followed by additional capital injections of USD1 million to support their growth. Kimbo Fund is structured as a Closed-Ended Collective Investment Scheme, regulated by the Angolan Capital Markets Commission and the Mauritius Financial Services Commission, with a tenor of Ten (10) years and a US$20 million target size.
In addition to financial support, the Fund is also committed to providing training and capacity building for entrepreneurs, ensuring that their activities are aligned with global Sustainable Development Goals (SDGs), whilst fostering the development of Angola's private capital investment ecosystem.
Importance of the Agreement
FSDEA's investment in the Kimbo Fund represents a strong commitment to supporting the growth of SMEs in Angola, which are crucial to the country’s economic development. This agreement not only symbolises the mutual trust between the two institutions but also highlights the vital role both play in creating a more dynamic and resilient financial environment in Angola. The collaboration between FSDEA and BFAAM aligns with the long-term vision of both institutions to foster a more inclusive, sustainable, and diversified financial markets in the country.
Armando Manuel, Chairman of the Board of Directors of FSDEA, highlighted the importance of this agreement, stating: "FSDEA's investment in this Venture Capital Fund is a strategic step that reinforces our commitment to supporting the growth of small and medium-sized enterprises in Angola through third-party entities. This initiative not only contributes to strengthening the national economy but also promotes financial inclusion, encouraging entrepreneurship and innovation in various areas, especially among women and young people."
Rui Oliveira, Chief Executive Officer & Co-CIO of BFAAM, also commented on the relevance of this partnership: "We are excited about this collaboration with FSDEA, which will have a significant positive impact on Angola's economic and social development. The Kimbo Fund is a testament to our investment thesis and long-term mission to use innovative capital solutions as a vehicle to finance and build stronger companies and produce measurable impact, as well as further cement our commitment to the growth of the region’s capital markets."
The ceremony was attended by the leadership of both institutions. From FSDEA, attendees included Armando Manuel, Chairman of the Board of Directors; Alcides Safeca, Executive Director; Igor Lima, Executive Director; Rui Ceita, Executive Director; Gabriel Silva, Executive Director; Alcídio José, Head of Strategy and Business Office; and David Zilungo, Head of the Legal Department. Representing BFAAM, attendees included Rui Oliveira, CEO & Co-CIO; Carla de Jesus, Executive Director; Manuel André, Executive Director; Pascoal Martinho, Investment Associate; and Cássia André, Executive Assistant & Office Manager.
The event was witnessed by Ms. Nádia Pinto, Acting Chairperson of the Capital Markets Commission (CMC).
About FSDEA
The Angolan Sovereign Wealth Fund (FSDEA) is an instrument for saving and transferring wealth to future generations, as well as maximizing returns, contributing to the economic growth of the country and the continent. FSDEA plays a complementary role in expanding efforts for economic diversification, in line with the directives of the National Development Plan (PND) approved by the Government.
About BFAAM
BFA Asset Management is an investment management company founded in Angola in 2016, with a cumulative of USD 500 million in assets under management. The firm provides capital solutions focused on generating risk-adjusted returns, invested in fixed income, alternative credit and private equity, across sub-Saharan Africa’s private and public markets.