Investisseurs & Partenaires (I&P), a leading impact investor specializing in African small and medium enterprises, announced today the first close of its third flagship fund, I&P Afrique Entrepreneurs 3 (IPAE 3), securing €41 million ($47.6 million) in commitments.
The Paris-headquartered firm, which operates offices across seven African cities including Abidjan, Nairobi, and Dakar, is targeting a final fund size of €70 million ($81.2 million). A second close is planned for the second half of 2026, according to the announcement.
Bridging Africa’s Financing Gap
IPAE 3 continues I&P’s established strategy of addressing what development finance experts call the “missing middle” — a critical but underserved segment of African businesses requiring equity financing between €1 million and €5 million.
This financing range has historically created a structural gap in African capital markets. Companies seeking this level of investment have typically outgrown microfinance institutions and early-stage venture capital funds, yet remain too small to attract the attention of large international private equity firms that typically deploy €10 million or more per deal.
“The missing middle represents some of Africa’s most promising growth companies,” said Jean-Michel Severino, founder of I&P, in previous statements about the firm’s strategy. “These are businesses that have proven their models and are ready to scale, but they fall into a gap where traditional financing sources don’t operate efficiently.”
Track Record of Impact
This latest fund builds on the success of IPAE 1 and IPAE 2, which collectively deployed capital across dozens of African SMEs in sectors ranging from agriculture and manufacturing to technology and healthcare. The firm reports that its portfolio companies have created thousands of jobs across the continent while generating financial returns for investors.
I&P has been a pioneer in the impact investing space in Africa, combining development objectives with commercial returns. The firm typically takes minority equity stakes in businesses and provides hands-on support to help companies professionalize operations, implement governance structures, and prepare for future growth rounds.
Growing Interest in African Private Markets
The first close of IPAE 3 comes amid renewed investor interest in African private markets, despite global macroeconomic headwinds. According to the African Private Equity and Venture Capital Association (AVCA), impact-focused funds raised $1.2 billion across the continent in 2024, demonstrating continued appetite for development-oriented investments.
However, the “missing middle” financing gap remains persistent. A 2023 report by the International Finance Corporation estimated that African SMEs face a financing gap of approximately $331 billion annually, with mid-sized growth companies particularly underserved.
Investor Base and Development Finance
While I&P did not disclose the specific composition of IPAE 3’s investor base, previous funds have attracted commitments from development finance institutions (DFIs), family offices, foundations, and institutional investors seeking both financial returns and measurable social impact.
Development finance institutions such as the European Investment Bank, Proparco, and various European development agencies have been anchor investors in I&P’s previous vehicles, recognizing the firm’s role in catalyzing private sector growth across francophone and anglophone Africa.
What’s Next
With €41 million already committed and offices positioned across key African markets, I&P appears well-positioned to continue deploying capital into its target segment over the coming quarters. The firm’s hands-on approach — which includes providing portfolio companies with strategic guidance, governance support, and connections to local and international networks — has become increasingly valuable as African businesses navigate complex regulatory environments and scaling challenges.
As the fund moves toward its second close in 2026, it will be closely watched by both the impact investing community and African entrepreneurs seeking growth capital in a segment that remains critically underserved despite the continent’s economic potential.
