NAIROBI, Kenya – May 15, 2025 – EG Capital is pleased to announce the successful completion of the first milestone in the rolling First Close of the EG-Economic Empowerment Fund L.P. (EG-EEF), with signed commitments over US$10 million, and soft commitments over USD $35 million as of Q1 2025. This achievement demonstrates strong investor confidence in EG Capital's mission to drive sustainable development in Africa through strategic private debt investments in high-growth SMEs.
Blended Finance Structure to Enhance Investor Confidence
To further bolster investor confidence and attract a diverse range of capital, EG Capital is implementing a blended finance structure that offers capital protection for investors, including Development Finance Institutions (DFIs). The target structure will include:
1st Loss Junior Equity: Providing a cushion to absorb initial losses, thereby reducing risk exposure for investors. Returns on the 1st Loss Junior Equity are capped at the hurdle rate, in alignment with EG EEF's strategy to invest 100% in Official Development Assistance (ODA) countries, with 80% of investments directed towards Least Developed Countries (LDCs).
2nd Loss Guarantee: Offering additional protection against potential losses, enhancing the risk-return profile for investors.
EG Capital has already secured signed letters of commitment and is in the due diligence process for this innovative structure.
Private Sector Mobilization and Fund Focus
The target final fund size for EG-EEF is USD $100 million, with a hard cap of USD $120 million, and an expected final closing in 2026. The rolling First Close will remain open until December 2025, with quarterly milestones aimed at bringing assets under management between USD $30 million and $60 million by year-end. EG Capital is targeting a 30% mobilization of private sector capital, including commitments from African institutional investors, through this blended finance model.
The fund will primarily focus on investing private debt in high-growth SMEs across the Food / Agri, Health, and Education Technology sectors in East Africa (Kenya, Tanzania, Rwanda, Uganda) and Southern Africa (Zambia, Namibia, Botswana).
Commitment to Climate Adaptation and Gender Equity
EG Capital is excited to partner with public sector investors and DFIs to mobilize private sector financing through this blended finance solution. The fund is focused on addressing critical challenges such as climate adaptation and gender equity, aligning with global sustainable development goals.
Selected as one of the featured solutions at the launch of Project Drawdown, our Managing Director, Sandrine Henton, has championed the business and impact case for investing in Food, Health, and Education as key drivers of climate adaptation since 2018—first presenting this vision at the International School of Geneva alongside Nobel Laureate Jacques Dubochet.
As a fund manager registered with NATO since 2023 (here), EG Capital is committed to upholding the highest standards of integrity and reputation. We are focused on driving impactful partnerships, particularly in the area of food security across Africa.
Team Focus on Completing First Investment
The EG Capital team will now focus on completing its first investment, leveraging the resources raised in the first close and working closely with our strategic partners.
Quote, Vera Awachie, SRI Specialist, Anesvad Foundation:
“At the Anesvad Foundation, we are deeply committed to investing on the continent in a way that reflects our values, and advances meaningful, measurable impact. We seek out partners, and funds that not only align with our mission, but also share our dedication to achieving long-term social and developmental goals. It is for this reason that we were proud to be among the first foundations to support EG Capital, and their team, whose approach to impact investing resonates strongly with our own..”
Quote, Sandrine Henton, Managing Director, EG Capital
"We are deeply grateful for the unwavering support of our anchor investors, including the Waterloo Foundation, managed by Cazenove Capital part of Schroders Wealth Management, Anesvad Foundation, managed by EuroCapital who also chairs Ronald Cohen's Global Steering Group for Impact Investment’s NAB for Spain, and the Swiss-based holding Regenerative. These investors joined us early, as far back as December 2022, following the challenging Covid years. Their patience and trust, as part of our Anchor Closing, have been essential in helping us build our investment pipeline, team, and fundraising efforts over the past two years. Their commitment truly exemplifies what it means to be catalytic investors, and we are immensely thankful for their continued partnership.
Equally, we extend our gratitude to the new investors joining our First Closing. Your contributions help us build bridges between private sector family offices, African institutional investors, and public sector investors, all aligned, and supporting this New Launch of an innovative blended finance structure.
Our experienced team is equally dedicated to launching this new strategy in private debt, with a 100% focus on climate adaptation and gender equity. We are proud to invest 100% in ODA countries, with 80% allocated to LDC countries in Africa, making a meaningful and sustainable impact in Africa."