Aruwa Capital Management, the Lagos-headquartered and women-led private equity firm, has secured a commitment of up to $8 million from the International Finance Corporation (IFC) for its second fund, Aruwa Capital Fund II (ACF II).
The backing represents a key step as the firm works towards its $50 million fundraising target, with a $60 million hard cap, aimed at tackling the persistent financing gap facing small and medium-sized enterprises (SMEs) across West Africa.
Under the IFC’s proposed package, the institution will provide up to $8 million in equity, capped at 20% of total fund commitments. The support also includes a $3 million subordinated co-investment through the IFC’s Concessional Capital Window (IDA21) as part of a blended finance structure.
Although the fund will primarily focus on Nigeria, it has the flexibility to allocate up to 20% of its capital to Ghana. In addition to capital, the IFC will offer advisory and capacity-building support at both the fund manager level and across portfolio companies.
Founded and led by Adesuwa Okunbo Rhodes, Aruwa Capital applies a gender-lens investment strategy. The firm targets growth-stage SMEs that are female-led, have gender-diverse leadership teams, or provide products and services that disproportionately benefit women.
The fund concentrates on sectors often overlooked by larger private equity players in the region, including Healthcare & Life Sciences, Consumer Goods, Financial Services, and Renewable Energy/Cleantech. Ticket sizes for ACF II are expected to range between $1 million and $3 million, focusing on businesses that have progressed beyond the seed stage but remain below the typical threshold for global PE firms.
Aruwa’s first fund, launched in 2019, built its track record by investing in several fast-growing Nigerian startups. The 2024 vintage Fund II has already begun deploying capital, with early investments in the consumer sector.
The vehicle has attracted a strong line-up of limited partners, including the Mastercard Foundation Africa Growth Fund, British International Investment (BII), EDFI ElectriFi, Ford Foundation, Visa Foundation, and Nigeria’s Bank of Industry.
The planned expansion into Ghana comes as Nigeria continues to navigate currency volatility and wider macroeconomic pressures. By diversifying within the ECOWAS trade bloc, Aruwa aims to manage regional risk while maintaining its West African focus.
For the IFC, the commitment aligns with its mandate to back “first-time” or “emerging” fund managers capable of reaching the “missing middle” — SMEs that drive employment but struggle to access institutional credit or equity.
