CardinalStone Capital Advisers has secured a significant investment of up to $15 million from the International Finance Corporation (IFC) to support the growth of small and medium-sized enterprises (SMEs) in West Africa. The funding will be channeled through the CardinalStone Growth Fund II, a private equity vehicle targeting businesses in Nigeria, Ghana, and francophone West Africa. The fund focuses on key sectors such as consumer goods, healthcare, agribusiness, industrials, and financial services.
The $120 million Growth Fund II is designed to provide long-term capital to profitable companies that face challenges in accessing funding. The IFC’s investment will not only provide financial support but also offer advisory services, focusing on governance, risk management, and operational efficiency. This partnership aims to enable portfolio companies to expand into new markets, enhance their internal systems, and scale their operations.
According to Yomi Jemibewon, Managing Partner at CardinalStone, SMEs are crucial to economic growth in the region and require structured capital to unlock their potential. The firm, founded in 2016 as a spin-off from CardinalStone Partners, specializes in backing mid-sized, often family-owned businesses and supporting their transition into institutionally managed companies with regional reach.
The IFC’s commitment to CardinalStone Growth Fund II reflects a broader trend of supporting mid-market companies that occupy the space between early-stage startups and large corporates. In West Africa, these SMEs account for a significant share of employment and output but often face limited access to patient capital. Private equity funds focused on operational improvement are playing an increasingly important role in filling this gap, providing not only capital but also governance standards, financial discipline, and strategic support to help businesses professionalize and scale.
By partnering with local managers like CardinalStone, the IFC can deploy capital more efficiently while leveraging on-the-ground knowledge of markets such as Nigeria and Ghana. This partnership also supports regional integration, as portfolio companies expand across borders within West Africa. As bank lending tightens and public markets remain shallow, private equity is becoming a key financing channel for established African businesses seeking growth capital. The collaboration between CardinalStone and the IFC is expected to have a positive impact on the region’s economic growth, supporting the development of SMEs and promoting regional integration.