African private equity firm Verod Capital, which backs mid-sized companies across the continent, has monetized its five-year-old investment in a pension firm, selling its stake to an existing shareholder. The deal marks the first exit from Verod’s second investment vehicle.
The Lagos-based PE firm has sold its stake in pensions fund administrator Tangerine APT Pensions Ltd to its minority partner APT Securities and Funds, it said in a statement.
The PE firm had fully acquired AXA Mansard Pensions and 45% of APT Pension Fund Managers in 2020 through its investment vehicles, including the $200-million Verod Capital Growth Fund III.
In 2021, the two businesses were merged to create Tangerine APT Pensions. Since then, its assets under management (AUM) have grown from approximately $67 million (₦100 billion) to over $300 million (₦445 billion).
“This exit validates Verod's investment approach. We identify high potential opportunities and work hard to execute with consistency, to deliver solid returns for our investors. This success was only possible with the support of our partners, APT Securities and Funds-we are leaving the business in very capable hands,” said Daniel Adeoye, partner, Verod.
Other portfolio companies of Fund III include i-Fitness Centre, DTRT Apparel, ISON Infotel, Medplus, Moniepoint, PAN African Towers, and Prime Pharmacy.
In July, Verod had monetised its eight-year-old investment in an education business, TAG Investments EW Africa Ltd, which owns and operates the Lancaster University Ghana campus in academic partnership with Lancaster University, marking the fourth exit from Verod Capital Growth Fund II.
Last year, it struck its sixth deal from its third investment vehicle, picking up a 65% stake in Nigerian fitness chain iFitness from PE firm CardinalStone Capital Advisers in a $12 million deal. It also picked up a majority stake in business process outsourcing (BPO) company iSon Xperiences, along with existing investor Africinvest.
Verod, which manages over $365 million in assets across three funds, is also looking to launch its fourth vehicle. The fund will have a sharper focus on climate solutions and an expanded footprint into Francophone West Africa.
The PE firm, founded in 2008, has invested in over 40 middle-market high-growth companies. These include Ghana-based DTRT Apparel, MedPlus, and Law Union & Rock Insurance.