Equator Capital Partners, a Chicago based impact fund manager, has invested in Fortis Microfinance Bank, Nigeria, representing a substantial minority position in the Bank, via its managed fund, ShoreCap II Limited.

Terms of the transaction were not disclosed.

Frank Kennedy, CEO of Equator Capital Partners, said: “We are enthusiastic about this new investment. Fortis Microfinance Bank Plc, which recently was granted a National Microfinance Bank License, is a strong and customer-centric microfinance bank and a true leader in the field managed by dedicated executives. We look forward to participating in the growth of this dynamic institution.”

Fortis Microfinance Bank is a leading Nigerian financial institution licensed by the Central Bank of Nigeria (CBN) in 2007 and listed on the Nigerian Stock Exchange as the first private sector–led Microfinance Bank in 2012.

The Bank has the goal of meeting the high demand for microfinance banking services by providing flexible banking solutions to support the development of micro, small and medium scale enterprises (MSMEs).

With 14 strategically located branches, Fortis provides access and financial empowerment to those at the base of the economic pyramid that constitute over 80% of Nigeria’s 160 million citizens.

Felix Achibiri, Chairman of the Bank, said: “We are delighted to announce this exciting partnership. Equator Capital Partners has decades of inclusive banking experience in Africa, helping institutions grow their products and open new markets."

"The investment by ShoreCap II Limited is a huge vote of confidence in the vision of the Bank to become the dominant microfinance bank in Nigeria, as we expand our reach to under-served communities all across the country,” he said.

ShoreCap II is a $80.3m Mauritius-based private equity fund focused on small business banks and microfinance institutions.

The Fund’s investor base includes 12 institutional investors including development finance Institutions and foundations from Europe, the US and Asia.

The ShoreCap II investment in Fortis marks the fund’s fourth investment in Africa; its portfolio now covers 10 sub-Saharan African countries.

Equator’s previous managed fund, ShoreCap International Limited, had five investments in Africa.