Metier announced the final close for Metier Capital Growth Fund III on Friday 19 July 2024, raising over $219 million exceeding its targeted fund size of $200 million. “We are pleased with the support shown by our investors to Metier and for this result given the tough fundraising climate the African private equity industry is experiencing”, said Paul Botha, CEO and Co-founder of Metier.
Peter Maila, Co-Chief Investment Officer at FMO, the Dutch entrepreneurial development bank, commented that, “FMO is proud to continue its long-standing partnership with Metier through its commitment in the Metier Capital Growth Fund III.”
The Fund, which announced a first close in September 2023, has made three investments to date in portfolio companies in the telecommunications, information technology and energy sectors. Botha continued, “The Fund is positioned to make additional investments before the end of this year given the vibrant deal pipeline we are observing. We seek opportunities that require growth capital with the potential to deliver top quartile returns and positive developmental impact”.
The Fund has a geographic focus on sub-Saharan Africa and is expected to make eight to twelve equity and equity-related investments into mid-market companies with strong growth features in sectors that benefit from regional economic and demographic trends such as population growth and increased urbanisation.
The Fund has attracted investment from both international and South African investors, including significant commitments from international development finance institutions and South African financial institutions, who are supporting the Metier team’s focus and track record of investing for developmental impact while delivering top quartile private equity performance.
Maila said, “Metier boasts an experienced, stable, and dedicated management team focused on building sustainable businesses and significantly enhancing resource efficiency and ESG standards. They have made substantial progress in developing their climate agenda and integrating climate considerations into their investment strategy. Committing to Metier Capital Growth Fund III aligns well with FMO's objectives of climate action, enabling local entrepreneurs to achieve inclusive prosperity, and fostering local prosperity across the continent”.
Botha concluded, “Our team is excited about the investment opportunities that exist on the continent and the meaningful impact and strong returns we hope to make for our investors.”