Metier’s second sustainable fund hits 75% of target at first close

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Following commitments from the African Development Bank and Proparco over the last couple of weeks, South African private equity firm Metier has held the first close for its second sustainable capital fund, having garnered a total of $113 million, or about 75% of its final close target. The LPs investing in time for Metier Sustainable Capital II’s (MSC II) first close are made up of predominantly European development finance institutions, three of which, (DEG, FMO, and Proparco) have backed prior Metier funds, with the rest, (CDC, European Investment Bank, Norfund, and Swedfund), are backing a Metier fund for the first time.

The 10-year fund expects to hold its final close by the end of this year, aiming to end up with $150 million (with a $200 million hard cap) to put to work.  As we’ve reported previously, the fund will invest equity, quasi-equity and other equity-related investment instruments in distributed generation, grid-tied generation and resource-efficiency sectors across southern Africa. In terms of IRR, the fund is aiming to return in excess of 20% to its LPs, a Metier associate confirmed to Africa Capital Digest.

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