What Pearl Capital Partners Is All About
Pearl Capital Partners (PCP) is an independent agriculture investment management firm that’s been making waves in East Africa since 2006. Specializing in small and medium-sized agribusinesses, PCP doesn’t just chase financial returns—they’re all about creating meaningful social impact too. Their secret sauce? Working closely with ambitious management teams, offering supportive investment structures, and bringing in specialist expertise to build high-growth agribusinesses. It’s a win-win: strengthening agricultural sub-sectors while boosting income for millions of smallholder farmers across the region.
The Main Benefits of Pearl Capital Partners’ Investments
Here’s a quick snapshot of what makes PCP’s work stand out:
- Since 2006, investing in East African agribusinesses with a dual focus on financial returns and social impact
- Current fund under deployment: Dairy and Horticulture Limited (DHCL), backed by €6 million in credit lines
- DHCL supports SACCOs and Cooperatives in Uganda’s key regions, lending to smallholder farmers in dairy and horticulture
- Yield Uganda Investment Fund (2017-2027) grew from an initial €12 million to €20 million in commitments
- Investments in 15 Ugandan agricultural companies, including Quality Milk Dairies and Newman Foods
- Collaborations with organizations like SNV and TechnoServe to provide technical assistance and business development support
Exploring the Dairy and Horticulture Limited (DHCL) Fund
DHCL is one of PCP’s flagship funds, launched in November 2022 with funding from the Kingdom of the Netherlands Embassy. It’s designed to provide medium-term loans to SACCOs and cooperatives across Uganda’s Central, Eastern, Western, and Southern regions. These loans then flow to smallholder farmers working in dairy and horticulture sectors. What’s cool is that DHCL isn’t just about money—it partners with SNV and TechnoServe to offer technical assistance and business development services, helping these institutions thrive and, in turn, boosting the farmers they serve.
Yield Uganda Investment Fund: Growing Agricultural Impact
Started in 2017, the Yield Uganda Investment Fund is a shining example of how strategic investment can fuel agribusiness growth. Initially funded with €12 million by the European Union through IFAD and the National Social Security Fund, it has since attracted commitments totaling €20 million. The fund has made 15 investments in Uganda’s agricultural sector, supporting companies like Quality Milk Dairies Limited and Newman Foods Ltd. These investments come in various forms—equity, quasi-equity, and blended debt—tailored to the needs of each business.
Other Noteworthy Funds and Investments by PCP
Beyond DHCL and the Yield Fund, PCP has a rich history of managing impactful funds. The African Agricultural Capital Fund (AACF) ran from 2011 to 2018, backed by big names like the Rockefeller Foundation and USAID, focusing on high-growth agricultural value chains. The African Seed Investment Fund (ASIF), funded by AGRA, provided risk capital to seed companies to improve certified seed delivery to smallholder farmers. And the African Agricultural Capital (AAC) fund, active from 2006 to 2018, invested in SMEs with a strong social impact angle. These funds collectively showcase PCP’s long-term commitment to transforming agriculture in East Africa.
Project Impact: Sustainable Development Goals (SDGs) Linked to Pearl Capital Partners
- SDG 1: No Poverty – Increasing income for smallholder farmers
- SDG 2: Zero Hunger – Strengthening agricultural value chains
- SDG 8: Decent Work and Economic Growth – Supporting SMEs and job creation
- SDG 9: Industry, Innovation, and Infrastructure – Providing technical assistance and business development support
- SDG 12: Responsible Consumption and Production – Promoting sustainable agricultural practices
- SDG 17: Partnerships for the Goals – Collaborating with international donors and technical partners
Business Development Support (BDS) Facility: Helping Agribusinesses Grow
One of the key enablers behind PCP’s success is the Business Development Support (BDS) Facility. This initiative is designed to help investee enterprises under the Yield Fund scale up and expand their operations. By offering tailored business growth support, the BDS Facility ensures that these agribusinesses don’t just survive—they thrive. It’s a crucial piece of the puzzle, helping to turn investments into sustainable, impactful businesses that benefit farmers and communities alike.
