CardinalStone Capital Advisers has completed the first closing of $76 million for its second West Africa-focused private equity fund, CCA Growth Fund II. This achievement follows the firm’s initial fund, which targeted fast-growing small and medium-sized enterprises (SMEs) in the region and helped them evolve into larger operators across West Africa.
The new fund will continue targeting Nigeria, Ghana, Côte d’Ivoire, and Senegal as its primary markets. It is 2X qualified, meeting criteria for investments that promote shared prosperity, equity, and environmental sustainability. The first close included contributions from both African and international investors, with a notable presence from domestic pension funds and asset managers.
Related: Development banks struggle to fund climate action in Africa
Key supporters from the initial fund returned, including the International Finance Corporation (IFC), British International Investment (BII), and SCM Capital. New participants joined, such as the Dutch Good Growth Fund, CardinalStone Partners, and Nigerian pension funds Stanbic IBTC Pension Managers, Access ARM Pensions, and FCMB Pensions.
West Africa’s SME sector drives job creation, yet many businesses face barriers to securing long-term capital. Farid Fezoua, Director for Equity, Funds, and Venture Capital at IFC, highlighted this gap. “Small and medium enterprises are the engine of job creation in West Africa, yet far too many still lack access to the long-term capital they need to grow,” Fezoua said. The fund will address this by providing both funding and operational support to high-potential enterprises.
Local institutional investors are increasingly active in West Africa’s private equity space. Sara Taylor, Director and Head of Private Equity Funds and Co-Investments at BII, stressed the importance of blending domestic capital with international investment. “The launch of the CCA Growth Fund II provides another milestone in demonstrating how DFIs can work with private institutions to drive investment where it is most needed,” Taylor said.
Related: Africa50 Raises Capital to Scale Infrastructure
The firm’s leadership—Femi Ogunjimi, Yomi Jemibewon, and Shirley Somuah—confirmed the first close will allow continued investment in scalable businesses across the region. The first fund backed seven SMEs, which collectively sustained over 8,000 jobs and indirectly supported an additional 1,000 through their supply chains.
The second fund will prioritize businesses aligned with West Africa’s development goals while seeking to generate financial returns for investors. The fund’s structure aims to reconcile both objectives by targeting enterprises capable of regional expansion and broader economic contributions.
The fund’s focus areas—Nigeria, Ghana, Côte d’Ivoire, and Senegal—represent some of West Africa’s most active economies. Nigeria leads as the largest market, while Ghana and Côte d’Ivoire offer stable business environments.
Related: Nigeria capital markets rebound thanks to reforms
The second fund will build on the portfolio of its predecessor by targeting businesses addressing key development priorities across West Africa, while seeking to generate financial returns for its institutional investor base.
The $76 million first close represents only a portion of the fund’s total target, leaving room for additional capital. The return of IFC and BII, along with new entrants like the Dutch Good Growth Fund, shows strong institutional backing. The fund’s success will hinge on its ability to identify and scale businesses that meet both financial and social benchmarks.
