The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is considering a major investment in Virunga Africa Fund II, a new $500 million growth equity fund managed by Kigali-headquartered Admaius Capital Partners.

According to project information disclosed by IFC on May 8, the institution is proposing an equity investment of up to $25 million in the fund, alongside a potential co-investment envelope of up to $10 million to support selected opportunities.

The proposed investment, which is still awaiting board approval expected on June 10, implies growing international confidence in Admaius Capital Partners and the performance of its predecessor fund, Virunga Africa Fund I.

Virunga Africa Fund II aims to invest in mid- to large-cap African companies operating in sectors with strong economic and social impact potential in which the Fund Manager has established expertise, including healthcare, education, fast-moving consumer goods (FMCG), digital infrastructure, and financial services.

Building on Virunga Africa Fund I momentum

The new fund follows the launch and deployment of Virunga Africa Fund I, Admaius’ first flagship private equity vehicle established in 2021 and anchored by institutional investors including the Rwanda Social Security Board (RSSB) and the Qatar Investment Authority (QIA).

Virunga Africa Fund I secured a first close of about $250 million and has since grown to approximately $280 million in commitments following a further commitment from the Public Investment Corporation (PIC), investing in eight companies across the continent.

The fund was also notable for becoming the first partnership registered in Rwanda under the country’s latest Partnership Law through the Kigali International Financial Centre (KIFC), strengthening Rwanda’s ambitions to position itself as a regional financial hub.

Industry observers say the strong fundraising and investment performance of Virunga Africa Fund I, likely helped pave the way for IFC’s interest in the successor fund.

Admaius Capital Partners describes itself as an independent African-owned private equity firm with one of the continent’s most experienced investment teams, bringing together more than 200 years of combined private equity experience.

Beyond its Kigali headquarters, the firm operates offices in Egypt, Kenya, Morocco, South Africa, Tunisia, and the United Kingdom.

Focus on high-impact African sectors

Virunga Africa Fund II plans to build a portfolio of between 10 and 12 companies, with investment sizes ranging from $15 million to $50 million per company, indicates IFC.

While the fund will prioritise majority ownership positions, it will also consider significant minority stakes where there is strong strategic alignment.

Its primary focus markets are expected to include Egypt, Kenya, Morocco, Rwanda, and South Africa.

According to IFC, the fund’s strategy is designed to address persistent financing gaps facing African mid-market businesses, especially in sectors linked to long-term development outcomes.

"IFC’s equity commitment and co-investment envelope will also help mobilise capital from private investors at the second close, enabling the Fund to reach its final target size,” the institution stated.

IFC also believes the fund could help expand access to long-term equity financing for African companies operating in development-focused sectors such as healthcare, education, and financial inclusion.

Private equity market faces pressure

The proposed investment comes at a time when private equity fundraising across Africa remains challenging due to higher global interest rates, tighter financial conditions, and weaker investor appetite for emerging markets.

Despite these pressures, African investment firms continue to pursue long-term opportunities tied to urbanisation, rising consumer demand, digital transformation, and expanding access to essential services.

Analysts say the proposed IFC backing could provide an important confidence boost for African-focused private equity fundraising while strengthening competition within the continent’s investment ecosystem.

The fund excludes investments in coal-related activities, K-12 education (formal academic education starting from Kindergarten to the 12th grade), non-Certified Sustainable Palm Oil (non-RSPO), high-risk financial institutions, and Category A activities under IFC’s environmental and social framework.