Private equity fund management business Metier has received $113-million in commitments and reached first closing on its second Sustainable Capital Fund (MSC II).
The fund will be used to strengthen renewable energy, energy efficiency, water and waste management investments in sub-Saharan Africa.
MSC II is the tenth capital pool for the Metier team.
The first Sustainable Capital Fund of 2012/13 was invested in eight companies, including water and wastewater treatment plants.
The fund secured commitments from Germany’s development finance institution DEG, Dutch entrepreneurial development bank FMO and the private sector arm of the French Development Agency called Proparco.
Some new investors in the first closing of MSC II include the European Investment Bank, the UK-owned development finance institution CDC Group, Norwegian investment fund Norfund and Swedish development finance institution Swedfund International.
“MSC II targets projects and partners which deliver social and environmental benefits, as well as returns on financial capital. For the first time in history, the lowest cost and emission energy solutions are aligned, which we hope to catalyse with a differentiated strategy tailored for the African environment.
“Included in the mandate of the fund are the sectors of water and waste efficiency, which we anticipate will benefit from pent up demand and acute shortages,” said Metier director Marc Immerman.