Exclusive: Adenia Partners on course to close Africa's biggest fund
TLDR
- Adenia Partners is raising $460 million for its latest Africa-focused fund, the largest since December 2021.
- The company has already raised $422 million from institutional investors and aims to reach the hard cap by the end of March.
- Adenia's strong track record and consistent returns have attracted international development finance institutions, investment funds, family offices, and new investors like a Kenyan pension fund and a US family office.
Adenia Partners, the Mauritian-registered Africa-focused private equity firm, is on course to raise $460 million for its latest fund, the largest Africa-focused fund raised since December 2021. As of the end of December 2023, the company had raised a total of $422 million from various institutional investors. By the end of March this year, it aims to reach a hard cap of $460 million and final close.
Acknowledging the tougher fundraising environment, Nnennia Ejebe, a partner at the firm, said in an interview with Daba, “We've been fortunate because we've had a good track record. Our first two fund vehicles were fully liquidated on time and in line with the documentation. Also, a track record of exit events and good, consistent returns meant that LPs [limited partners] were willing to look at us.”
Investors in Adenia's latest fund include several international development finance institutions such as the International Finance Corporation, Proparco, the US International Development Finance Corporation, the European Investment Bank, DEG, and Findev Canada. Other investors include investment funds such as FMO, SIFEM, and Norfund; several European and African family offices; and for the first time, a Kenyan pension fund and a US family office.
Key Takeaways
Adenia's latest fundraising activity highlights the importance of international DFIs to the African private capital ecosystem, especially during a tougher market environment. According to research by the African Private Equity and Venture Capital Association (AVCA), the total value of African private capital fundraising in the first nine months of 2023 fell to $1.2 billion, a 40% decline compared to the year before. Along with this retreat in capital allocated to final closes, we saw a modest decline in the average fund size, and a concentration in fundraising, with the two large funds closed accounting for half of the total capital raised. Adenia focuses on buyout control. It takes majority stakes in more mature businesses that need more strategic and financial support to implement a growth plan.
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