Funding
IFC Proposes $7.5 Million Senior Loan to Cauris Finance's Third Wave Fund
By News Desk ·
Key takeaways
- IFC proposed a senior loan of up to $7.5 million to Cauris Finance's Third Wave Fund, pending a projected board date of November 30, 2026.
- The Third Wave Fund is seeking $75 million with a hard cap of $100 million and a capital structure of 60% senior debt, 30% mezzanine debt and a 10% first-loss tranche.
- Cauris Finance closed a $40 million debt facility in December 2024 to support African fintechs offering credit to small businesses.
The International Finance Corporation proposed a senior loan of up to $7.5 million to Cauris Finance's Third Wave Fund, a structured debt vehicle targeting technology-enabled lenders across Africa, Startup Researcher reported. The fund is managed by Cauris Investment Management, a US-based credit investment firm focused on emerging markets.
How the Third Wave Fund Is Structured
Cauris is seeking $75 million for the Third Wave Fund, with a hard cap of $100 million. IFC's proposed investment would be a senior loan of up to $7.5 million, or 10% of the fund's size, whichever is lower. The five-year facility includes a grace period of up to 48 months, followed by a 12-month amortization period.
The fund's capital structure comprises 60% senior debt, 30% mezzanine debt and a 10% first-loss tranche, providing 40% subordination beneath the senior debt tranche. IFC's proposed financing would sit within the senior debt tranche, benefiting from that subordination.
Approximately 60% of the fund's capital will target fintech lenders that provide working capital to micro, small and medium-sized enterprises, with the remaining 40% allocated to mobility-focused fintech companies offering vehicle lease-to-own financing to entrepreneurs and gig-economy workers. Cauris plans to operate across East, West and Central Africa, including Kenya, Ghana, Uganda, Côte d'Ivoire, Rwanda, Tanzania, Senegal and Cameroon. Cauris expects more than 25% of its MSME investments to support women-led enterprises across the target markets.
The fund will use Cauris' proprietary DeepDive platform to improve transparency into underlying loan portfolios. Founded in 2021, Cauris Investment Management specializes in senior secured lending to technology-enabled lenders in emerging markets, and is headquartered in Oakland, California, with team members in Kenya and Burkina Faso.
IFC expects its proposed investment to attract other investors and development finance institutions. The investment remains pending approval, with a projected board date of November 30, 2026.
Cauris Finance's Funding Record
According to akta.pro company records, Cauris Finance closed a $40 million debt facility in December 2024 to support African fintechs that offer credit solutions to small businesses and entrepreneurs. The same records list one funding round on file, the December 2024 debt-funded round of $40 million.
| Figure | Detail |
|---|---|
| Total funding | $40 million |
| Funding rounds on record | 1 |
| Last round | 2024-12-04, debt-funded, $40 million |
African Lending Deals Compared
Absa invested in Lendable's MSME Fintech Credit Fund 2, becoming the first African bank to participate in the blended-finance strategy, African Business reported on October 12, 2026. The fund closed oversubscribed at $255 million, with Absa providing a subscription line.
Second Avenue Capital Partners provided an $8 million senior secured revolving credit facility to IT'SUGAR, a specialty candy retailer operating over 100 locations in North America, PR Newswire reported on October 6, 2026.
IFC's Projected Board Date
IFC's proposed investment remains pending approval, with a projected board date of November 30, 2026, according to Startup Researcher.