Private equity firm Adenia Partners Ltd. secures a substantial investment of $470 million to fuel its expansion efforts in Africa’s fintech, telecommunications, healthcare, and other sectors. The funding marks Adenia’s largest Africa-focused fund to date, attracting new investors and reaffirming confidence from established backers.
New Investor Landscape: Among the investors joining Adenia’s venture are Norfund AS, the US International Development Finance Corp., and Canada’s Findev Inc. Additionally, Africa’s largest fund manager, the Public Investment Corp. Ltd., alongside Ghanaian and Kenyan pension funds, have shown their support for Adenia’s vision.
Strategic Investment Approach: Adenia’s Managing Director, Alexis Caude, outlines the company’s strategic focus, emphasizing their preference for controlling stakes ranging from 51% to 100% in target businesses. This approach allows Adenia to steer investment decisions and optimize exit strategies, aiming for net returns of at least 15% in hard currency despite challenging market conditions in Africa.
Operational Expansion and Market Presence: With a two-decade track record in Africa, Adenia navigates competition from industry players such as Alterra Capital Partners Ltd. and Helios Investment Partners LLP. The firm is actively engaged in significant deals, including a carve-out agreement with Air Liquide SA involving 12 African operations. Moreover, Adenia extends its reach with investments in South Africa and the establishment of a new office in Lagos, Nigeria, underscoring its commitment to tapping into the vast opportunities within Africa’s dynamic economies.
Future Outlook: Despite the inherent challenges in African markets, Adenia remains optimistic about its growth prospects. Caude highlights the company’s presence in seven African countries, supported by a team of 21 seasoned investment professionals. The firm’s long-standing investors, including the European Investment Bank and the World Bank’s International Finance Corp., demonstrate their continued confidence by doubling their commitments on average, reflecting a strong endorsement of Adenia’s strategic vision and operational excellence.
Source: NairaMetrics