CardinalStone Capital Advisers is preparing to raise $120 million for its second small and medium-sized enterprise-focused private equity fund, aimed at expanding access to growth capital across West Africa. The new vehicle, CardinalStone Capital Advisers Growth Fund II, is designed to support high-growth SMEs in markets where private equity financing remains limited and fragmented.
The fund will concentrate primarily on Nigeria and Ghana, while also targeting opportunities in Francophone West Africa, particularly Ivory Coast and Senegal. Investments will focus on sectors considered critical to regional economic growth, including consumer goods and services, agribusiness, selected industrial segments and financial services.
To anchor the fund, the International Finance Corporation is considering an equity investment of up to $15 million, subject to board approval scheduled for January 12, 2026. IFC’s participation is expected to enhance the fund’s credibility and help attract additional institutional investors.
Domiciled in Mauritius, the fund will pursue a generalist strategy, investing mainly through equity and equity-linked instruments while providing close operational support. CardinalStone plans to work with portfolio companies to strengthen governance, professionalise operations and support regional expansion, reflecting the central role of SMEs, which account for 92% of businesses and contribute 70% of GDP in Ghana.
Growth Fund II builds on CardinalStone’s first SME fund, which closed in 2021 at $64 million. Despite closing below its initial target, the inaugural fund enabled investments across multiple sectors, with typical ticket sizes ranging from $5 million to $10 million per company.
