CardinalStone Capital Advisers Raises $76 Million for Second Growth Fund

CardinalStone Capital Advisers (CCA) has reached a $76 million first close for its second fund, the CCA Growth Fund II. The fund will provide growth capital to small and medium-sized businesses in West Africa, with a focus on Nigeria, Ghana, Côte d’Ivoire and Senegal. CCA will target businesses with strong growth potential and plans to support companies as they expand their operations, enter new markets and invest in their businesses.

Fund Targets West African SMEs

CCAGF II is also focused on businesses that need longer-term capital to grow. Many SMEs in West Africa struggle to secure financing that can support expansion over several years. CCA plans to invest in companies that have already demonstrated potential and are ready to scale.

The first close attracted both returning and new investors. Returning limited partners include the International Finance Corporation (IFC) and British International Investment (BII), alongside SCM Capital. New investors include Nigerian pension funds Stanbic IBTC Pension Managers, Access ARM Pensions and FCMB Pensions. The Dutch Good Growth Fund has also committed capital.

The participation of Nigerian pension funds adds more domestic institutional investment to the fund. The involvement of development finance institutions also provides continued backing for CCA’s approach to investing in growing businesses.

CCA Builds on First Fund

IFC Regional Industry Director for Financial Institutions Farid Fezoua said the investment will help address the shortage of capital available to high-growth businesses in West Africa. BII also highlighted the role of private investment in supporting businesses and mobilising capital for economic development.

CCA partners Femi Ogunjimi, Yomi Jemibewon and Shirley Somuah will manage the new fund. They said the first close gives CCA the capacity to continue working with entrepreneurs and support companies as they grow. The new fund follows CCA’s first growth fund and brings together domestic pension capital with international development finance. CCA will now begin deploying capital across its four target markets while working towards the fund’s final close.