James Emejo in Abuja
Aruwa Capital Management has announced the successful close of its first institutional fund, which was reportedly oversubscribed, and surpassed its $20 million target.
Founded in 2019 by Adesuwa Okunbo Rhodes, Aruwa seeks to address the investment gap that women-led enterprises face in Africa.
The fund plans to invest between $500,000 and $2.5 million in women-focused small and growing businesses in Nigeria and Ghana, targeting investments in critical sectors such as healthcare, fintech, renewable energy, and essential consumer goods.
The fund’s first institutional and anchor investors include Visa Foundation, Mastercard Foundation Africa Growth Fund, and leading family businesses from Africa, Europe, and the United States.
To date, the fund has made six investments, committing over 45 per cent of its capital into a diversified portfolio of rapidly growing companies.
Head of Investments at Visa Foundation, said, Najada Kumbuli, “Visa Foundation is pleased to be the first institutional investor in Aruwa Capital Management. We deeply believe that in order to address the financing gap that women-led small businesses face, we need to empower and invest in more women-led investment funds like Aruwa.”
Also, Chief of Party at the Mastercard Foundation Africa Growth Fund (MFAGF), Samuel Akyianu, said, “We selected Aruwa Capital as one of our first investments because we were impressed by the team’s grit, conviction, and depth of analysis, their value addition for early-growth stage SMEs in Nigeria, and their commitment to driving impact for women and youth.
“We look forward to working with the team to help make Aruwa Capital a success story.”
On her part, Rhodes, in a statement, said, “Having launched the fund in October 2019 shortly before the COVID-19 pandemic, we are very grateful for the confidence of world-class institutional investors who have put their trust in us and share our vision for the continent – generating superior returns, whilst having a significant socio-economic development impact in the countries we invest in.
