Adenia Partners, a private equity firm targeting small and medium-sized deals in Sub-Saharan Africa, has held the final close for its fourth fund, hitting its hard cap of 230 million euros or $257 million in an oversubscribed fund raise. The fund, which was launched in November 2015, held a first close a year later, garnering 180 million euros on commitments from a mix of international institutional investors, regional and European individual investors, entrepreneurs, family offices and foundations.
Christophe Scalbert, a Principal in Adenia’s Abidjan office, led the raise for the 10-year fund. The size of the fund dwarfs Adenia’s prior funds and is more than double the size of Adenia III, a €96 million vehicle which was launched in 2012. A little over 70% of commitments were made by investors in Adenia’s prior funds, all of whom increased the size of their allocations, while 25% of the commitments were made by several LPs new to the firm. Adenia’s directors and principals hold 4% of Adenia Capital IV between them.
The fund, which is yet to make an investment, will back profitable companies generating between $5 million and $40 million in turnover, with EBITDAs of between $1 million and $7 million. Deals will be sourced in a variety of sectors including consumer goods, business services, manufacturing, financial services, ICT and telecommunications, and hospitality.
The fund’s strategy remains consistent with those pursued by Adenia’s prior funds, seeking to make control buyout or growth capital investments in market leaders which have strong potential for operational improvement. In combining differentiated approach to asset selection, the provision of capital and hands-on engagement with the portfolio firm helps maximize value creation prior to exit.
Solomon Wifa of Wilkie Farr acted as legal advisor to the fund for the raise.