Our Investment Approach
Our commitment remains unwavering towards our mission: forging partnerships with businesses to unlock opportunities in West Africa.
Guided by exclusive research and an extensive network of regional industry experts and financial institutions, we identify compelling investment prospects, often inaccessible to the public, with significant potential for robust earnings growth.
Our core values at Verod are anchored in prudent economic and social responsibility, encompassing profit-driven and non-profit initiatives. At the heart of our philosophy lies the conviction that successful investments seamlessly align with sustainability. At Verod, we consider this alignment fundamental to sound business practice.
Verod’s mission is to drive financial growth and positive social impact. Our vision spans beyond profitability, aiming to uplift local communities and foster long-term economic stability. This dual focus underscores our unwavering commitment to deliver sustainable value for our partners, investors, and the regions in which we operate. With a foundation built on integrity and excellence, Verod continues to chart a course where success intertwines with meaningful progress.
Our Investment Process
Verod maintains a consistent and transparent investment process that guides us in identifying, selecting, and pursuing valuable investment prospects.
After thorough evaluations of Financial, Commercial, Legal, and ESG Due Diligence, the findings are presented to Verod’s Investment Committee, including an independent external member. This committee then formulates investment recommendations.
Leveraging our in-house expertise in transactional advisory, we adeptly negotiate and structure investments, establishing a growth-oriented framework. Additionally, we assume an active role in overseeing and managing portfolio companies, ensuring the execution of business plans and optimal positioning for successful exits.
Our comprehensive investment process encompasses deal sourcing, meticulous screening, rigorous due diligence, and effective structuring and financing. After the investment, our dedicated deal team remains closely engaged with each business, providing guidance, monitoring progress, and enhancing portfolio investments’ value from inception to exit. Verod’s primary focus is achieving substantial capital appreciation over the medium to long term.
Our Investment Strategy
At Verod, our core strategy revolves around nurturing sector leaders, focusing on companies poised for robust growth.
We prioritize equity and equity-linked investments that offer downside protection, particularly in high-growth middle-market opportunities within Sub-Saharan Africa, predominantly West Africa. We aim to cultivate a diversified portfolio spanning dynamic industries, including Consumer Goods and Services, Financial Services, Light Manufacturing, Agribusiness, Business Services, and Education. We actively pursue investment prospects in companies that typically exhibit:
- Established and proven business models.
- High growth potential within their market.
- Profitability or the potential for swift attainment of profitability post-funding.
- Resilient and motivated management, or the potential to establish such leadership.
- Robust company governance and ESG standards, or the potential to implement this post-investment.
- Capability to generate substantial free cash flow for reinvestment or shareholder returns.
- Opportunity to ascend as leaders within their respective sectors.