Firm secures $470m for fintech investment
A private equity firm specializing in investments across Africa, Adenia Partners Ltd., announced the closing of its latest fund, Adenia Africa Fund, with a total capital raise of $470m.
The funding will be strategically deployed in high-growth sectors such as fintech, telecommunications, healthcare, and others, supporting innovative businesses that are poised to make a significant impact in their respective markets.
This fund represents Adenia’s largest Africa-focused fund to date, with new investors including Norfund AS, the US International Development Finance Corp., and Canada’s Findev Inc., it said in a statement.
The Adenia fund has received backing not only from Africa’s largest fund manager, the Public Investment Corp. Ltd., which manages approximately 2.6 trillion rand ($138bn) in South African government-employee pension assets, but also from pension funds in Ghana and Kenya.
The Managing Director of Adenia, Alexis Caude, noted that this marks the firm’s fifth fund, with an increased average equity check size of about $40m for its investment targets.
Speaking on the Fund’s focus and the condition for the investment, Caude said, “In time, we have moved to the larger economies on the continent, where we see businesses that fit the criteria that we want for our transactions.
“We only make investments in businesses where we can take a controlling stake—between 51 per cent to 100 per cent – so that we can be in the driver’s seat.”
“Africa-focused private equity managers need to provide investors with returns and exit options. Adenia seeks net returns of at least 15 per cent in hard currency and takes a controlling stake in businesses to be able to dictate exit timing.
“The environment is not easy in Africa with really high interest rates. Making returns is difficult, with the currencies depreciating. Exits are complicated in Africa, which is why we believe in taking a controlling stake in businesses—this makes it easier to attract strategic investors,” Caude noted.
With two decades of experience operating on the continent, Adenia faces competition from established players such as Alterra Capital Partners Ltd., which emerged from Carlyle Group Inc., and Helios Investment Partners LLP.
Currently, Adenia is actively involved in a carve-out deal with Air Liquide SA, encompassing 12 African operations. Additionally, the firm has made investments in South Africa and has expanded its presence by inaugurating an office in Lagos, Nigeria.
“We have expanded our presence to Nigeria; while it’s a challenging place, it’s a large economy,” Caude said.
