Impact Fund

FRAGG Impact Fund
Impact Fund Oluwatomi Duduyemi September 14, 2023
FUNDING GLOBAL IMPACT

The FRAGG Impact Fund is driven by the need to promote sustainable and impact finance and to provide financial resources and technical assistance to viable multi-sector SMEs in West Africa.

Even with the availability of several institutions and services for financing small businesses, access to finance remains a major challenge to the growth of Small and Medium Scale Enterprises in the focal region. It is estimated that the region faces over $60 Billion funding gap for SMEs annually.

FRAGG Impact Fund is a 75 Million USD closed-end fund to be domiciled in Mauritius, to invest in growth/expansion stage companies with ticket size ranging from 500,000 USD to 6,000,000 USD. Our goal is to fill a market gap in the West African market.

The fund which is currently being structured aims to provide businesses in West Africa long term risk capital that allows them room to operate at their full potential. As an SME-focused fund, FRAGG’s main target is investing in high-growth companies in West Africa, especially those at the expansion. Our goal is to make a strong financial return for our investors while supporting companies that are contributing to a better world.

Get in Touch
https://fragginvest.com/wp-content/uploads/2021/12/investment.jpg
SMEsOur SME pipeline targets must meet with the following characteristics:
1
Need funds in the range of 500,000 USD and 6 Million USD
2
A financially viable business model
3
Clear and transparent ownership structure and a strong management team in place
4
Have a diverse staff with reasonable number of women and youths, with projects that support women and youths in ownership and outreaches
5
Have operating outreaches covering both rural and urban areas.
6
Focused on an organic growth approach
What We Look For
Our Pipeline Targets
Inclusive Financial InstitutionsPipelines with the following characteristics:
1
The institutions must have verifiable histories of measurable and scalable positive social impact investment, vision of positive impacts to their pipelines and strong financial sustainability models.
2
Impact portfolio asset size of at least 2 Million USD.
3
A strong governance structure and management team.
4
Comply with all statutory regulatory provisions in the area of operation and have at least 3 years audited financial statements.
Inclusive Finance & Related Fintech Services
Including Microfinance/SMEs Banks, Finance Houses, OFIs, Commercial Banks, Payment Solutions, and other Financial Technology Solutions.
Agriculture
Agribusinesses covering the entire agriculture value chain, including but not limited to food production especially small-holder farming, food processing and storage, packaging, distribution (transportation and haulage), and wholesale/retail market (export or domestic).
Healthcare
From diagnosis to treatment and core areas of health management and prevention, including but not limited to general and specialized hospitals, primary health care centers, pharmaceuticals, HMOs, and health technology.
Affordable Housing
Housing projects that increase access to practical and viable housing especially for earners on the lower end of the spectrum. Sustainable and energy efficiency housing projects are of particular interest.
Education
Inclusive education models with projects covering low-fee private education in preparatory, primary, secondary, tertiary, and vocational institutions, education technology (EdTech), educational infrastructure and related services.
Climate Finance
Projects covering climate Mitigation, Adaptation and REDD+ (reducing emissions from deforestation and forest degradation). Projects including but not limited to Renewable Energy, Lower Carbon & Efficient Energy Generation, Waste Management & Recycling, Non-Energy GHG Reductions, Sustainable Transportation, Water & Waste Water Systems, and Coastal & Riverine Infrastructure.
Previous
Next
Our Geographic Focus Covers
  • Nigeria
  • Benin Republic
  • Togo
  • Ghana
  • Cote d’Ivoire
Our Growth Lifecycle

Our investments focus primarily on expansion-stage companies. However, we are able to consider investment opportunities in all growth phases of the impact focal companies.

We offer patient capital

To high-impact/high-growth companies. However, we also value the commercial returns to investors, as this is key to ensure the long-term sustainability of our initiative. Hence, we balance the interests of the investors with the price to pipeline beneficiaries.

A Legacy of Success
Team Track Record
$25M
Managment

Managed a 25 Million USD Debt Fund with 99.8% recovery rate and 10% ROI to investors

100
years
Experience

Has over 100 years combined experience in SME Fund Management, Fund Mobilisation, and implementation of Business Development Services for SMEs and Impact Project

Trends
Understanding

Has an understanding of the local trends in monetary policies, hence FX risk advice is tailored to fully protect investees

Network
Network

Has a high network in the Impact Investment ecosystem covering the investors, local financial institutions, regulatory bodies and good pipelines

Skilled
Team

An experienced local team, with deep knowledge of the local market, culture, language, socio-political and regulatory environment in the West African region, while maintaining a strong external affiliation with international stakeholders in the impact ecosystem