Asset Classes
Through its venture capital fund (Verod-Kepple Africa Ventures), Verod Capital focuses on early to growth stage, technology-driven start-ups solving the most pressing problems on the continent, predominantly in West and East Africa, with investments ranging from US$250,000 to US$7.5 million, in core sectors including FinTech, Logistics, HealthTech, EdTech and software, thereby creating a diversified portfolio across the continent.
Our competitive edge arises from our unique approach of sourcing opportunities through proprietary research and a deep local network as well as offering hands-on support to partner (portfolio) companies to ensure sustainable and responsible value creation.
Private Equity
Through its private equity funds, Verod Capital focuses on high-growth businesses, led by strong, results-driven management teams, in Anglophone West Africa, particularly Nigeria and Ghana.
Verod Capital’s private equity arm manages over $360 million in assets and has invested in over 20 middle-market high-growth companies across 3 funds. Verod Capital’s private equity funds invest in a range of industries including healthcare, education, agribusiness, renewable energy, consumer products and services, financial and business services with investments ranging from US$10 million to US$25 million.
Our competitive edge arises from our unique approach of sourcing opportunities through proprietary research and a deep local network as well as offering hands-on support to partner (portfolio) companies to ensure sustainable and responsible value creation.
Our History
Founded in 2008 as an investment boutique operating out of West Africa, Verod Capital has evolved into an investment management firm with a rich, long-standing entrepreneurial culture.
In its infancy, Verod Capital raised capital on a deal-by-deal basis. In 2014, in response to the growing opportunities in West Africa and conversely, the increased appetite of foreign institutional investors looking to expand into new markets, Verod Capital transitioned into one of the truly indigenous Private Equity firms in West Africa. Following a successful capital raising drive in a particularly challenging macroclimate in Nigeria and West Africa as a whole, the firm exceeded its original target fund size, and Verod Capital Growth Fund II launched as the largest first-time fund in Nigeria’s history. In 2019, the over-subscribed Verod Capital Growth Fund III closed at its US$200m hard cap, exceeding the initial target, as well as, the size of its predecessor fund (Verod Capital Growth Fund II).
As part of its strategic plan to evolve into a full-suite investment manager, in 2021, Verod Capital entered a joint venture with Kepple Africa (a pan-African venture capital firm) called Verod Kepple Africa Ventures (“VKAV”) creating a pan-African venture capital fund which will invest in early to growth stage, technology-driven, B2B start-ups in the FinTech, Logistics, HealthTech, EdTech and software spaces, inter alia, solving the most pressing problems across the continent, predominantly in West and East Africa, thereby creating a diversified portfolio.
Verod Capital is backed by a rich blend of mainly foreign and institutional investors including pension funds, sovereign wealth funds, insurance companies, asset management firms, fund of funds, family offices, foundations, sovereign wealth funds and development finance institutions, with extensive experience supporting Fund Managers across emerging markets.
Overview
Niyya Farms
Founded in 2008, Verod Capital is a leading African investment management firm. Through its private equity funds, Verod Capital focuses on high-growth businesses, led by strong, results-driven management teams, in Anglophone West Africa, particularly Nigeria and Ghana. And through its venture capital fund (Verod-Kepple Africa Ventures), focuses on early to growth stage tech-enabled start-ups in Nigeria and the rest of Africa.
Verod Capital’s private equity arm manages over US$360 million in assets and has invested in over 20 middle-market high-growth companies across 3 funds. Verod Capital’s private equity funds invest in a range of industries including healthcare, education, agribusiness, renewable energy, consumer products and services, financial and business services with investments ranging from US$10 million to US$25 million. While the venture capital fund invests between US$250,000 to US$7.5 million in tech-enabled start-ups solving the most pressing problems on the continent, in core sectors including FinTech, Logistics, HealthTech, EdTech and software, thereby creating a diversified portfolio across the continent.
Our competitive edge arises from our unique approach of sourcing opportunities through proprietary research and a deep local network as well as offering hands-on support to partner (portfolio) companies to ensure sustainable and responsible value creation.
Our Team
The firm is lead by partners with significant combined experience and expertise in Investing and operating businesses in West Africa.
The wider Verod team is composed of high calibre, diverse group of professionals with complementary strength and depth of experience in investing and supporting operations of partner companies.
Our Investment Approach
Verod continues to remain true to its original mission of partnering with businesses to harness opportunities within West Africa.
Verod looks to actively drive economic development across key industries; opportunistic by nature, the firm has developed a deep understanding of its local market and its track record to date demonstrates its ability to select high quality deals based on well thought-through investment strategies. Through proprietary research and its deep network of regional industry professionals and financial institutions, Verod is able to source attractive, at times off-market investment opportunities exhibiting strong potential for marked growth in earnings.
Overall, Verod strives to be economically and socially responsible in both its for-profit and non-profit endeavours and at its core strives to generate attractive risk-adjusted returns. One of the firm’s key philosophies is its belief that successful investing is not incompatible with responsible investing; indeed, Verod believes it is simply plain good business.
Our Investment Process
Verod consistently follows a transparent and disciplined process in identifying, selecting and pursuing investment opportunities.
Once the respective Financial, Commercial, Legal and ESG Due Diligence reviews are finalised, results are presented to Verod’s Investment Committee (which includes an outside, independent member), which makes investment recommendations.
Leveraging it’s in house transactional advisory expertise, the firm aims to negotiate and structure investments to provide the necessary framework for growth, and typically takes an active role in monitoring and managing portfolio companies to execute on the business plan and position the portfolio company for a successful exit.
Overall, the investment process typically includes deal sourcing, deal screening, rigorous due diligence, structuring and financing. Once an investment is made, the respective deal team stays actively involved in each business to direct, monitor and increase the value of portfolio investments from the period of investment to exit. Verod will typically look to achieve significant capital appreciation within the medium to long-term, and on the whole, will look to:
- Mitigate risk, in the event the portfolio company underperforms (e.g: ensuring adequate protection in a minority equity holding by negotiating adequate control rights to influence key decisions such as strategy, operating capital budgets and the selection and evaluation of senior managers);
- Incentivise management to grow the value of the business; and
- Develop the portfolio company’s overall internal controls and governance towards international best practices.
Our Investment Strategy
A key part of Verod’s core strategy is to develop sector leaders, with a focus on companies with the potential for strong growth.
The firm will seek to invest in equity or equity-linked instruments with downside protection typically in high-growth middle-market opportunities in Sub-Saharan Africa, primarily West Africa. The firm aims to build a diverse portfolio across several fast-developing industries including but not limited to, Consumer Goods and Services, Financial Services, Light Manufacturing, Agribusiness, Business Services and Education.
The Firm targets investment opportunities in companies that typically possess:
- Proven business models;
- High growth market potential;
- Profitability or ability to quickly reach profitability after funding;
- Strong and motivated management or the ability to institute such strong management;
- Strong company governance and ESG standards or the ability to implement such standards after investment;
- Capacity to generate significant free cash flow for reinvestment or shareholder return; and
- Potential to become leaders within applicable sectors.
Our Awards
