Lightrock Africa Fund II secures IFC $20 million commitment

International Finance Corporation (IFC) is considering an equity commitment of up to $20 million to Lightrock Africa Fund II, a growth-stage private equity fund targeting high-growth African firms.

The commitment, paired with a $5 million co-investment facility, is designed to strengthen capital access for emerging businesses across Kenya, Nigeria, and South Africa, while exploring opportunities continent-wide.

Expanding growth capital for African companies
The fund aims to raise between $150 million and $200 million and will pursue a generalist investment strategy focused primarily on Kenya, South Africa, and Nigeria, while exploring opportunities across the wider continent.

It plans to build a portfolio of 8 to 12 high-growth companies, deploying investments of $10 million to $20 million per company in exchange for minority stakes typically ranging between 10 and 20%, often accompanied by board representation.

IFC’s proposed $20 million commitment, capped at 20% of the fund’s total committed capital, would help anchor the vehicle’s first close and signal confidence to global investors considering exposure to African private equity markets. The development finance institution also plans to maintain a $5 million co-investment facility to support select transactions alongside the fund.

Lightrock expands its African investment platform
The fund will be advised by Lightrock Kenya Ltd, part of the global impact investment platform Lightrock Group. The African investment team, headquartered in Nairobi, is led by Shakir Merali, Ravi Sharma and Arul Thomas.

Lightrock, which operates internationally from London, counts Stiftung Fürst Liechtenstein III as its ultimate shareholder. The new fund will be structured as a limited partnership registered in Mauritius and will invest exclusively across Africa.

Catalyzing Africa’s private equity ecosystem
The proposed fund aims to expand access to private equity capital for small-cap African companies while providing operational support and value-creation strategies to accelerate growth. By supporting Lightrock Africa Fund II, IFC intends to catalyze renewed international investor participation in the region’s private equity market.

If successful, the fund could demonstrate the scalability of the regional small-cap private equity model, encouraging other fund managers to launch larger follow-on vehicles and stimulating broader investment activity across Africa’s emerging business landscape.