As the European private equity world’s eyes increasingly turn towards Africa – a continent rich in potential, yet historically underserved by global capital – one name was featured more than others at the recent AVCA conference in Sandton: Adenia Partners.
From its inception in 2003, with a modest €10 million fund, Adenia has now spectacularly closed its fifth fund, Adenia Capital V, at a hard cap of $470 million. This landmark fund was not just a financial success, but a testament to the growing confidence in Africa’s economic opportunity set — and it was significantly oversubscribed, with global investors clamouring to participate.
Founded two decades ago, Adenia began as a vision to harness Africa’s vast entrepreneurial potential through substantial financial injections. Today, it boasts a pan-African presence, with seven offices strategically positioned across the continent. Adenia Capital V marks a milestone moment as Adenia’s first entirely pan-African fund, indicating a matured, continent-wide strategy poised to tap into diverse market opportunities from North to South and East to West.
Adenia’s investment philosophy revolves around making control investments in medium-sized African companies that not only promise robust returns, but also have significant room for operational and environmental, social and governance (ESG) enhancements. The firm remains sector-agnostic, engaging in a wide array of industries, including financial services, agribusiness, renewable energy, consumer goods, telecommunications, healthcare, education, business services, light manufacturing and specialty distribution. This diverse investment approach reflects a deep understanding of the
continent’s varied economic drivers, and a commitment to fostering sustainable development across sectors.
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Reflecting on the growth, Alexis Caude, Managing Partner at Adenia, highlighted the journey from a €10 million initial fund to the current $470 million giant, emphasising the firm’s consistent approach and expanded footprint across Africa:
“It is incredible to look back on Adenia’s journey over the last two decades,” Caude remarked, underscoring the firm’s strategic evolution and deepening market penetration.
The latest fund, AC(V), dwarfs its predecessors in scale and scope, showing Adenia’s rising trajectory on the private equity landscape. Notably, the firm’s ability to attract over 60% of its capital from returning investors, including major development finance institutions like DEG, EIB and IFC, signals a strong vote of confidence in Adenia’s management and strategy. The remaining 40% of the fund’s commitments from new backers – including notable players like the US International Development Finance Corporation and large African institutional investors, such as South Africa’s Public Investment Corporation – indicate a broadening investor base and a deepening trust in Adenia’s capabilities.
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Adenia has not wasted time putting the capital to work, and early investments from Fund V include strategic forays into renewable energy with Enfin, a South African solar financing solutions provider, and logistics with The Courier Guy, a well-known leader in delivery services, also in South Africa.
It has also announced the acquisition of 12 subsidiaries of Air Liquide in West and Central Africa and the Indian Ocean, highlighting the firm’s capacity to engage and execute significant, complex transactions with global industry leaders.
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On the exit front, Adenia Partners made four times its money when it successfully exited its investment in Ademat, an industrial company based in Côte d’Ivoire.
In 2016, Adenia acquired Ademat and immediately embarked on a comprehensive transformation programme to enhance the company’s operational efficiency and environmental, social and governance (ESG) standards. Key initiatives included the introduction of innovative management tools and an automated maintenance management system, significantly improving the company’s service delivery and operational reliability.
Adenia also implemented a strategic ESG action plan, which featured improvements in job quality, such as biannual bonuses and above-average salary reviews. Ademat invested €700,000 in a new facility, tripling its storage capacity and enhancing worker safety and amenities. These improvements aligned Ademat’s operations with international ISO standards and introduced effective recycling protocols for its products, setting a benchmark in sustainability practices within the industry.
The firm’s strategic focus on operational excellence and sustainable practices not only strengthened Ademat’s market position, but also attracted a slew of interested PE and financial buyers, leading to a highly successful exit in 2021.
Adenia’s successful strategy in Côte d’Ivoire underscores the potential of private equity to act as a catalyst for significant business transformation and sustainable development in emerging markets.
Africa’s promise is being unlocked by the likes of Adenia, which stands as an exemplar of the sort of innovation and enduring partnerships that are seeing private equity withstand the economic downturn better than many other asset classes.