WEST AFRICA – Adiwale Partners, an SME fund primarily targeting investments, has announced completed the final closing of its very first West African investment fund, Adiwale Fund I of around 60 million euros.
The company, co-founded in 2016 by two former partners of Cauris Investment Management, raised a total of 60 million euros (US$69.6 million). This amount is below the target size of 75 million euros (US$87 million) expected by the private equity fund manager.
Its two co-founders, Jean-Marc Savi de Tové and Vissého Gnassounou also regret that this final closure took place “in a very difficult fundraising environment, amplified by the Covid 19 pandemic”.
Despite this context, the two partners of Togolese origin claim to be able to “build an attractive portfolio of growing assets” in French-speaking West Africa, the main geographical area of coverage of Adiwale’s first fund.
The vehicle will focus on four countries (Côte d’Ivoire, Senegal, Mali and Burkina Faso) underserved by the private equity market, but whose economic prospects open up opportunities.
Adiwale Fund I will invest between 3 and 8 million euros per transaction, in medium-sized companies, well established in their markets and capable of growing rapidly.
Last June, the fund carried out a first operation within an Ivorian company for the installation and maintenance of industrial and commercial air conditioning solutions.
The fund, which makes minority acquisitions, will continue its commitments by targeting the consumer services, business services and industrial sectors.
Adiwale Fund I, which welcomed the International Finance Corporation (IFC) as the last investor during its final closing, had in the past benefited from the support of several financing institutions on a continental level, but also internationally.
In 2019, The African Development Bank signed off on its US$13.86m equity investment in Adiwale Fund 1, a first-generation private equity fund targeting high growth potential Small and Medium Sized Enterprises (SMEs) in francophone West Africa.
The Bank Group’s board of directors approved the investment in March as part of its commitment to grow SMEs and improve livelihoods in countries underserved by the global equity market.
With a target fund size of €75 million, the Fund will take minority stakes in vibrant SMEs in countries where economic prospects and the Fund’s networks permit a rapid scale up.
Deal size for the Fund will range from €3 to €8 million. Primary target countries will include Cote d’Ivoire, Senegal, Burkina Faso and Mali, while secondary beneficiaries will include Togo, Benin and Guinea.
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