The Commonwealth Development Corporation (CDC) Group, a development finance institution owned by the UK government, recently invested $15 million in CardinalStone Capital Advisors Growth Fund (CCA), to enable them execute their developmental projects for small and medium businesses within Nigeria.
The partnership between the two firms has spanned over two years, with CDC playing a key role in the formation of the Growth fund.
This funding is among various investments the CDC made for the growth of African businesses. In November 2018, the development finance institution had entered into a major risk participation agreement worth $100 million with African Export-Import Bank.
The CardinalStone Capital Advisors Growth Fund allocates investment into six sectors, agriculture, industrials, FMCG, healthcare, education and financial services. The beneficiaries of this fund will be companies operating in these sectors that support job creation and import substitution to diversify the Nigerian economy.
CDC is constantly seeking more ways to create domestic and foreign investment in Nigeria. The finance institution plans to invest up to $4.5 billion across Africa over the next four years.
CardinalStone Capital Advisers (CCA) is a Private Equity Investment Adviser operating out of Lagos, Nigeria. The firm invests in high potential SMEs that can stand out in their various sectors, a strategy that will enable the development of Nigerian and regional West African economies.