Adenia Partners reportedly closes a $470 million African-focused fund and also eyes a controlling stake in the process.
The firm, Adenia Partners Ltd., a private equity firm that looks for opportunities in Africa, has finished raising its fifth and biggest fund yet, called the Adenia Africa Fund, for $470 million.
Adenia Partners Closes $470 Million African-Focused Fund
The Adenia Africa Fund, with a total of $470 million, plans to invest in various industries across Africa, such as fintech, telecom, and healthcare. The fund has received investments from both existing and new investors, including Norfund AS, the US International Development Finance Corp., and Canada’s Findev Inc.
Additionally, it includes investments from the Public Investment Corp. Ltd., which manages around $138 billion in South African pension assets, as well as pension funds from Ghana and Kenya.
Christophe Scalbert, Head of Investor Relations at Adenia Partners, mentioned in a recent interview that the firm surpassed its initial fundraising target of $400 million.
Long-term investors, like the European Investment Bank and the World Bank’s International Finance Corp., doubled their commitments to the fund when it launched in January 2023, contributing $300 million. This early investment helped the firm reach 75% of its initial fundraising goal.
The Company Has Increased the Average Equity Investment Size to About $40 Million
Alexis Caude, Managing Director at Adenia, explained that the firm has increased the average equity investment size to about $40 million. Adenia aims to acquire a controlling stake ranging from 51% to 100% in the businesses it invests in, allowing it to have significant influence over its operations.
“Africa-focused private equity managers need to provide investors with returns and exit options. Adenia seeks net returns of at least 15% in hard currency and takes a controlling stake in businesses to be able to dictate exit timing,” Caude stated.
Adenia Has Been Active In Africa for Over 20 Years
The company, Adenia has been active in Africa for more than 20 years, starting in 2002. The company, headquartered in Mauritius, operates in seven African countries and has a team of 21 investment professionals.
Recently, Adenia expanded its operations to Nigeria by opening a new office. This move aims to take advantage of Nigeria’s fast-growing economy, despite the challenges in the investment landscape.
Adenia is Collaborating with Air Liquide SA
At present, the firm is collaborating with Air Liquide SA on a deal involving 12 operations across Africa. Adenia competes with other companies like Alterra Capital Partners Ltd. and Helios Investment Partners LLP in the African investment space.
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