The commitment was made alongside contributions from other development finance institutions and private investors as part of the fund’s first close.

ADP IV is structured to continue DPI’s long-term investment approach on the African continent, targeting mid-sized to larger companies that are positioned for expansion.

The firm anticipates that the fund will assemble a pan-African portfolio of approximately a dozen businesses spanning key sectors such as education, healthcare, financial services, industry, digital economy and fast-moving consumer goods.

DPI sees these industries as well-placed to benefit from broad economic trends in Africa, including rapid urbanization, digital adoption and the growth of the middle class.

Proparco’s $42 million subscription reinforces a longstanding partnership with DPI and aligns with its mandate to channel private capital into opportunities that support sustainable development outcomes.

The institution emphasizes environmental, social and governance considerations as part of its investment criteria, including contributions to job creation and adherence to internationally recognized impact standards.

Tibor Asboth, Head of Proparco’s Private Equity Division for Africa and the Mediterranean, said the investment reflects confidence in DPI’s capacity to identify and nurture high-growth African enterprises while helping to unlock private capital flows that underpin economic expansion.

Proparco’s involvement is also expected to help attract further institutional investment into the fund by acting as an anchor investor.

DPI launched ADP IV with an ambitious target of raising around $1 billion, continuing its record of backing African companies that contribute to economic growth and inclusive development.

In previous funds, DPI has built multi-sector portfolios and worked with portfolio companies that employ tens of thousands of people across the continent.