Blue Earth secures over $100m for impact investing in Africa, others

AFRICAN STOCKS AND FINANCEOctober 9, 2023 at 11:57 AM UTC

Blue Earth Capital has successfully closed its dedicated credit impact fund, BlueEarth Credit Strategies II, with $108.5 million in commitments. This achievement pushes the firm's total assets under management (AuM) above $1 billion across its various strategies, including private credit, private equity, and funds and co-investments.

The fund attracted commitments from a diverse group of limited partners (LPs) and investors, including the U.S. International Development Finance Corporation, a major development finance institution.

BlueEarth Credit Strategies II will focus on credit investments in impact sectors and growth markets across three continents (Africa, Asia, and the Americas), with a diverse strategy encompassing financial inclusion, agribusiness, affordable housing, energy access, and healthcare.

Key Takeaways

Impact investing is on the rise globally, and Africa, as the fastest-growing continent in terms of human capital, technology adoption, and natural resource supplies, is well-positioned to capitalize on this trend. Africa has a young population, with a median age of less than 20 years and 70% of the population under the age of 30. This demographic advantage, combined with a growing interest in impact investing, presents significant opportunities for the continent. According to the Global Impact Investor Network's 2020 survey, nearly half of global impact investment capital is directed towards Africa. However, it's worth noting that less than 1% of traditional private equity funds are invested in the continent. This underscores the potential for further growth in impact investing in Africa, driven by a desire to address pressing social and environmental challenges while generating financial returns.