Verdant Capital Hybrid Fund

Overview

Verdant Capital Hybrid Fund is a pan-African investment firm specializing in private equity investments across the continent. The firm focuses on providing mezzanine capital to inclusive, digitally enabled financial institutions serving micro, small, and medium-sized enterprises (MSMEs). The fund's investment strategy includes hybrid capital instruments such as subordinated debt, mezzanine instruments, preference shares, and stapled investment structures. It has a target size of USD 100 million at final close in 2024, with commitments totaling USD 38 million as of the first close in December 2021. In 2023, Verdant Capital completed 18 transactions, including investments in LOLC Africa and Mogo Kenya. The firm also advised on mergers and acquisitions, such as the sale of Unguka Bank in Rwanda and an acquisition in South Africa for Saint Gobain. Additionally, Verdant Capital advised five clients on debt and equity capital raisings, including the leading African digital payments business, Zeepay. The firm's portfolio companies include Zeepay, LOLC Africa, and Mogo Kenya. Zeepay, a leading African digital payments business, received a USD 3 million preferred equity investment from Verdant Capital Hybrid Fund in March 2024. LOLC Africa, the African operation of the leading Asian microfinance group LOLC, received a USD 9 million investment in June 2023. Mogo Kenya, a leading taxi and mobility financing operation, was also a recipient of the fund's investment. Verdant Capital Hybrid Fund's investments are structured as holding company loans, directed towards subsidiaries in various African countries, including Zambia, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo. The fund's investments aim to support the expansion of MSME financing across the continent, promoting financial inclusion and economic growth. The firm's investment philosophy emphasizes supporting top-tier, high-impact financial institutions that drive inclusive growth across Africa. Verdant Capital Hybrid Fund's investments are aligned with its mission to back inclusive financial institutions on a pan-African basis, focusing on digitally enabled financial institutions serving MSMEs. In summary, Verdant Capital Hybrid Fund is a pan-African investment firm dedicated to providing private equity investments in inclusive financial institutions across Africa. Its strategic focus on hybrid capital instruments and commitment to supporting MSMEs underscores its role in promoting financial inclusion and economic development across the continent.

Investment Focus

• Inclusive financial institutions
• Digitally enabled financial institutions
• Serving micro, small, and medium-sized enterprises (MSMEs)

Portfolio Companies