Development Partners International (DPI), an Africa-focused private equity firm with $1.1bn under management, has announced a $100m investment through its ADP II Fund in Atlantic Business International (ABI).

Sofiane Lahmar, Partner at DPI, said: “Our investment thesis is based on the opportunity to invest alongside a strong sponsor BCP in a leading, growing and profitable banking franchise, with a strong management team that has delivered solid performance.”

“We want to also capitalize on strong growth prospects and low banking and insurance penetration in the UEMOA region (in particular Côte d’Ivoire),” he said.

“The investment will be used to increase capital in existing ABI’s subsidiaries, fund IT investments, accelerate the group’s retail expansion as well as acquisition opportunities in and outside the UEMOA region which have been an important part of ABI’s growth strategy,” he added.

ABI is the third largest banking entity in the West African Economic and Monetary Union (UEMOA) and the second largest bank in Côte d’Ivoire in terms of deposits with banking and insurance operations across Côte d’Ivoire, Senegal, Burkina Faso, Benin, Togo, Niger, Mali and Guinea Bissau.

ABI, a subsidiary of Banque Centrale Populaire (BCP), is set to benefit from the still relatively low banking penetration rate which has been growing rapidly from approximately 8% in 2011 to 16% in 2015.

Mohamed Karim Mounir, General Manager in charge of Corporate, Investment and International Banking at BCP, said that over the last four years, ABI has grown to be one of the leading banking groups in UEMOA.

“This partnership will strengthen the capital base of our subsidiary and give it the resources it needs to fulfil its growth ambitions. While achieving its development in West Africa, this partnership with DPI will expand the Group across Sub-Saharan Africa,” he said. 

Euromed Advisory (led by Zineb Abbad El Andaloussi) & Rothschild, KPMG France, and Dentons advised DPI on the deal. 

PwC and Allen & Overy assisted BCP on the transaction.

The second oversubscribed DPI fund closed in March 2015 at $725m.

ADP II is pursuing a broadly diversified strategy across industries that benefit from Africa’s growing middle class including the financial services, healthcare, education, construction, logistics, telecoms and consumer goods sectors.

Some of ADP II’s existing portfolio companies include: Université Privée de Marrakech, a leading private university; RTT, Africa’s largest privately-owned parcel distribution company; HomeChoice, a home-shopping and credit retail company; Eaton Towers, a telecom tower company; and B.Tech, Egypt’s leading retailer for home appliance and consumer electronics.

The ADP II investor-base includes corporate and public pension funds, endowments and foundations, funds of funds, family offices and development finance institutions from across the US, Europe, Middle East and Africa with significant interest from US investors, which currently make up just over 40% of its limited partner base.