New Delhi, July 22 -- Verod Capital, an African private equity firm that backs mid-sized companies across the continent, has monetized its eight-year-old investment in an education business, selling its stake to an existing shareholder.
The Lagos-based firm has fully exited its investment in TAG Investments EW Africa Ltd (TAG West Africa), which owns and operates Lancaster University Ghana in academic partnership with Lancaster University, UK. The stake was acquired by Transnational Academic Group (TAG) Ltd, an existing shareholder in the company.
Verod had invested in TAG West Africa in 2017 through its $115-million Verod Capital Growth Fund II.
TAG West Africa had earlier partnered with Lancaster University, UK, in 2013 to establish Lancaster University Ghana, the first and only research-active British university campus in mainland Africa, offering foundation and undergraduate courses.
During its holding period, Verod worked closely with TAG West Africa to relocate Lancaster University Ghana to a new, larger campus with a capacity for around 3,000 students.
"We invested in TAG West Africa to increase access to world-class tertiary education in the region and are proud to have played our part in delivering on this aim," said Trish Amoah-Ntim, investment principal at Verod.
This is the firm's fourth exit from the second fund, following earlier divestments from Nigerian trust company UTL Trust Management Services, the Central Securities Clearing System (CSCS), and solar power company Daystar Power.
Other investments from Fund II include Rainbow College, specialty retailer Africa Lifestyle, and beverage company Niyya Foods.
Verod, which manages over $365 million in assets across three funds, is currently deploying from its $200-million Verod Capital Growth Fund III, and is also looking to launch its fourth vehicle, which will focus on climate solutions and expand its footprint into Francophone West Africa.
Founded in 2008, the firm has invested in over 40 mid-market high-growth companies, including Mansard Pensions, Ghana-based DTRT Apparel, MedPlus, Tangerine Financial, and Law Union & Rock Insurance.
Last year, Verod struck its sixth deal from the third investment vehicle, picking a 65% stake in Nigeria's leading fitness chain iFitness from PE firm CardinalStone Capital Advisers in a $12-million deal. It also picked a majority stake in business process outsourcing (BPO) company iSon Xperiences along with existing investor Africinvest.
Published by HT Digital Content Services with permission from VC Circle.