Africa-focused hedge fund Enko Capital had raised $100 million to finance mid-sized lenders. The fund aims to address a significant credit gap faced by African mid-sized firms, which often struggle to access traditional financing.

According to a Bloomberg report, Enko Capital is expanding its financial solutions for African companies, particularly fintechs, to enhance their reach and ability to close the financial inclusion gap. It also aims to demonstrate the commercial potential of private credit on the continent.

For this stage, Enko Capital will provide dollar-denominated private credit to mid-sized companies in Sub-Saharan Africa. Sectors it will be focusing on include agriculture, telecommunications, manufacturing, renewable energy, and financial services. 

In addition to the $100 million funding, Enko Capital is targeting to raise $150 million at final close and has a hard cap of $200 million. The company, which manages $1.3 billion in debt, equity and private equity investments, says the plan is to deliver strong risk-adjusted absolute returns for its partners. 

Investors in Enko’s fund include British International Investment, the UK’s development finance institution and IFC, a member of the World Bank Group. Others are SICOM Global Fund Limited, European Impact Investor, as well as African pension funds and family offices.

Providing more explanation on the project, Managing Partner at Enko Capital, Alain Nkontchou, said the fund will provide essential growth capital to mid-market small. He emphasised that this initiative addresses the significant funding gap faced by African businesses and contributes to sustainable development.

Also, Enko Capital is joining asset managers looking to raise new private credit funds. The plan is aimed at emerging markets to capitalise on an explosion of financing deals in the sector. 

The IFC pledged to invest up to $25 million or 20% of the fund’s total commitments. The first closing of the $150 million was in September 2025. The round, which raised $100 million, surpassed its target of $80 million.

To manage potential risks, the fund will utilise financial instruments such as guarantees, insurance wraps, and collateral. It aims for gross returns between 14% and 16%, with cash coupons ranging from 9% to 11%, and the remainder expected from additional upside structures.

Established in 2008, Enko Capital is an African-focused asset management firm managing debt, private debt, equity and private equity investments across Africa. While it currently manages $1.3 billion, the company offers a deep knowledge of the continent combined with recognised investment expertise. 

Also Read: Funding: These African Startups raised at least $10 million in H1 2025.

Enko Capital’s $100 million: An opportunity for African fintechs 

Fintechs in Sub-Saharan Africa that fall within the mid-sized category can tap into this private credit project to support their growth and expansion plans. The fund provides an avenue for fintechs to benefit from Enko Capital’s expertise to navigate the complex financial landscape. 

Mid-sized firms are characterised by annual revenues between $10 million and $1 billion and a team of 50 – 500 employees. Also, these companies have established and proven Business models that have contributed to expanding their customer base and revenue. 

Fintechs such as Paystack, Flutterwave, Moniepoint, LemFi, Raenest and Kuda fall into the mid-sized category.

International Finance Corporation (IFC), a member of the World Bank Group and Enko Capital’s prominent partner, backed Senegalese e-health startup KERA to raise $10 million in funding in June.

Emerging markets funding from private lenders such as Blackstone Inc. and Apollo Global Management Inc. is on course for its biggest year on record.

As of September, funding into startups across Africa had hit $2.2 billion after 58 startups raised a combined $140 million in the month. More importantly, funding in 2025 has now equalled 2024 with about three months to go.

The second quarter remains the most-funded quarter of the year with startups raising $963 million in the three months of April, May and June. The third quarter is the second-highest so far, with startups attracting $785 million during the quarter.