Business returns to grassroots in Adenia with launch of entrepreneurial investment fund
Adenia Partners, a Mauritius-based investment firm, is putting together a new fund called the Adenia Entrepreneurial Fund (AEF). The fund aims to provide funding for African Small and Medium-sized Enterprises (SMEs) who struggle to find financing from traditional private equity.
The AEF is expected to have deal sizes in the range of $10m-$25m. Adenia started fundraising for the AEF in March with a target fund size of $150m and a hard cap of $180m.
The development finance institutions and impact investors that have supported Adenia Partners' five main funds and are likely to be interested in the new Adenia Entrepreneurial Fund include CDC Group (now British International Investment), Norfund, FMO (Dutch Development Bank), and DEG (German Investment Corporation). Across its funds, Adenia has attracted investments from multilateral and development finance institutions, impact funds, African pension funds, and family offices with links to the continent.
Adenia focuses on sectors such as retail, off-grid solar, light manufacturing, pharmaceuticals and healthcare, and distribution businesses. One of Adenia's past investments in the retail sector is the acquisition of Kenyan supermarket Quick Mart, made through its fourth fund in 2019, which has since tripled the number of stores to around 60.
Adenia takes controlling stakes in the companies in which it invests, allowing for more straightforward and reliable data collection. The firm considers a broad range of potential sectors due to the relatively under-developed African markets. When measuring impact, Adenia focuses primarily on the quality of jobs and levels of diversity, the sustainability of infrastructure and operations, and criteria specific to the investee company's industry.
Adenia creates a theory of change for each business it invests in to show investors how measures taken compare to outcomes achieved. The firm is looking to improve communication and marketing of its impact outcomes to the wider investment industry. About 75% of Adenia's investors have an impact lending mandate.
The AEF has multiple investment opportunities in Kenya, South Africa, francophone West Africa, and the Indian Ocean region. Symbiotics has committed $5m to a Ghanaian agritech company, demonstrating the potential for impactful investments in the region.
Elsewhere, Clarmondial and Supernova are teaming up to boost nature-based investments in Indonesia. These initiatives highlight the growing interest in impact investing and the potential for positive change in various global markets.
In conclusion, the Adenia Entrepreneurial Fund represents an exciting opportunity for supporting African SMEs and contributing to sustainable economic growth in the continent. By focusing on sectors with high growth potential and prioritising impact, Adenia Partners is well-positioned to make a significant impact in the African investment landscape.
