Adenia Partners Ltd., a private equity firm, has secured its largest Africa-focused fund, amassing $470 million, with new investors such as Norfund AS, the US International Development Finance Corp., and Canada's Findev Inc, according to Bloomberg. The Public Investment Corp. Ltd., Africa's largest fund manager overseeing about $138 billion in South African government-employee pension assets, supported the Adenia fund, alongside Ghanaian and Kenyan pension funds. This marks Adenia's fifth fund, with an increased equity check size averaging about $40 million per target, according to Adenia Managing Director Alexis Caude. Caude highlighted the firm's shift towards larger economies on the continent, targeting businesses that align with their investment criteria. Adenia exclusively invests in businesses where it can hold a controlling stake of 51 to 100 per cent. Despite global challenges in private equity fundraising due to high borrowing costs and economic uncertainty, Caude noted that firms with focused strategies and proven track records can still attract investors. Adenia, operating in Africa for 20 years, faces competition from firms like Alterra Capital Partners Ltd. and Helios Investment Partners LLP. Caude emphasised the importance for Africa-focused private equity managers to deliver returns and provide viable exit options. Adenia targets net returns of at least 15 per cent in hard currency, strategically taking controlling stakes in businesses to facilitate exit strategies. The fund maintains a sector-agnostic approach, focusing on investments in fintech, telecommunications, healthcare, and other sectors. Currently, it's engaged in a carve-out deal with Air Liquide SA involving 12 African operations. Adenia has expanded its presence to Nigeria, acknowledging the challenges but recognising its potential as a large economy. Founded in 2002 and headquartered in Mauritius, the company operates in seven African countries with 21 investment professionals. Older investors, including the European Investment Bank and the World Bank's International Finance Corp., have reportedly doubled their commitments on average.
