By participating in the fund launched by Metier, Proparco aims to support the development of mid-caps able to meet the consumption demands of the middle classes in South Africa and Sub-Saharan Africa.
Metier, the manager, is one of the leaders in South Africa in the management of investment funds for mid-caps. The management company was set up in 2004 and has already raised two other funds in the past dedicated exclusively to South Africa. The team is managed by three founding partners, with a combined experience of over 60 years, and comprises a dozen or so investment officers.
Metier Capital Growth Fund II (MCGF II) is the third fund launched by Metier. The fund (USD 260m) will invest in mid-caps exposed to the consumption trends of African middle classes which need capital to finance their growth. At the end of the life of the fund, MCGF II will need to have a direct or indirect exposure in Sub-Saharan Africa (excluding South Africa) of at least 50% of the investments made.
A number of development impacts are expected from this project. Firstly, it should contribute to the creation of some 5,000 jobs in underlying companies. It will also support the implementation of the Black Economic Empowerment (BEE) policies promoted by South Africa, by mobilizing a partner company for this purpose.