PROPARCO, AFD’s subsidiary dedicated to financing the private sector, has just announced the signing of a commitment of 15 million euros at the first closing of the Adenia IV fund.

The Adenia team, formed by the entrepreneur Antoine Delaporte, wishes to pursue its investment thesis based on a foundation of solid experience with 20 investments and ten primary transfers made via three first vehicles dedicated to the Indian Ocean and West Africa. The fund favors the development of medium-sized and often family-owned companies confronted with a problem of shareholder succession and management. The fund’s support for the invested companies will rely on multi-country operations (Côte d’Ivoire, Ghana, Madagascar, Mauritius), via a majority stakeholder structure, and a close partnership with the founding promoters. Three pillars include: (i) opening up to regional markets (developing a multi-country footprint), (ii) diversifying and upgrading the product / service offer, (iii) institutionalizing (strengthening intermediary management and preparation for succession, financial and organizational professionalization, standardization to best practices in ESG). The fund’s investments will cover a diverse range of sectors ranging from agribusiness to financial services, healthcare, telecoms and tourism.

The first closing of Adenia IV was a success with nearly 185 MEUR raised for a final target size of 200 MEUR and attracted a significant share of private players from the 20 investors (Old Mutual and European family offices) alongside the financial institutions of development and Averroes III. Adenia IV marks a true change of scale of Adenia which was born with a first fund of 10 MEUR, a team of three people and funding exclusively raised with the development partners. Adenia is already well known to PROPARCO who had invested in Adenia I and II.

The portfolio invested in the first three vehicles demonstrates a positive social and economic impact: (i) almost 4,700 jobs were created or supported, including about 900 net creations during the holding period of the three funds, (ii) More than 30% of positions created for women, of which 20% are managerial positions, (iii) 1,400 supported dairy farmers from Madagascar, (iv) significant leverage from local sources, (v) Total of nearly € 20 million in tax revenues paid by companies invested over the last year.

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