Verod is a leading West-African private equity investor seeking to partner with fast growing companies, led by strong, result driven management teams, and which have the potential to become large, dominant and sustainable enterprises. We are focused on creating economic value, and also resolutely committed to creating jobs, promoting gender equality and supporting environmental sustainability. We are active across various sectors, including but not limited to light manufacturing, consumer goods, business services, agriculture, education, healthcare and financial services.
A firm with a rich, long-standing entrepreneurial culture, Verod was founded in 2008 as an investment boutique operating out of West Africa. In its infancy, Verod 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 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.
Verod 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 and development finance institutions (with extensive experience supporting Fund Managers across emerging markets).
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.
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 its 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:
As mentioned, 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 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:
The wider Verod team is composed of a high caliber, diverse group of professionals with complementary strengths and depth of experience in investing and supporting operations of partner companies.
The wider Verod team is composed of a high caliber, diverse group of professionals with complementary strengths and depth of experience in investing and supporting operations of partner companies.
Oreon has invested in the following schools: | |
Tangerine Pensions Tangerine Life Tangerine General |
Oreon has invested in the following schools: | |
Tangerine Pensions Tangerine Life Tangerine General |
Oreon has invested in the following schools: | |
Tangerine Pensions Tangerine Life Tangerine General |
Oreon has invested in the following schools: | |
Tangerine Pensions Tangerine Life Tangerine General |
Oreon has invested in the following schools: | |
Tangerine Pensions Tangerine Life Tangerine General |
Oreon has invested in the following schools: | |
Tangerine Pensions Tangerine Life Tangerine General |
Verod is a responsible investor with a commitment to creating shared value deeply embedded through its operations both on firm and portfolio level. Verod aims to generate economic value in a way that also produces value and sustainability for the communities in which it operates.
Underpinning its corporate philosophy and growth path is an appreciation that its growth objectives cannot be achieved effectively without a committed focus on sustainable development; Verod firmly believes that successful investing and responsible investing are not mutually incompatible.
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This is a summary of Verod Capital Management’s ESG Policy. The information contained here is intended for information purposes only and should not be relied on for completeness.
At Verod, we recognise that it is critical for our investments to contribute to building sustainable societies and environments to achieve a return on investment. To this end, we are committed to developing, implementing and continuously improving management of ESG issues and to structuring investments with the policies, governance structures, targets and reporting systems to effectively manage the risks and opportunities that sustainable development presents.
In line with our ESG commitments, we will strive to ensure that adequate human, technical and financial resources are constantly available to ensure implementation of our ESG Policy.
Verod’s board and executive management are committed to ensuring that adequate human, technical and financial resources are available to ensure implementation of the firm’s ESG Policy and to procuring that all firm, and portfolio company activities are carried out in a socially responsible and environmentally sustainable manner.
In order to meet our ESG objectives, we have set the following ESG operational requirements:
In implementing this ESG Policy, Verod has recourse to internationally recognised standards, national laws, ESG policies and standards of investors, and ESG requirements of side letters executed with investors.
In particular, Verod will have recourse to the International Finance Corporation Performance Standards, the African Development Bank’s Integrated Safeguard System and Operational Safeguard Standards, FMO’s ESG Policy and the World Bank’s General Environment, Health and Safety Guidelines.
Verod strives to ensure compliance and compliance by portfolio companies, with all applicable national laws, rules and regulations of any government, regulatory body, organisation and licensing agency but in the event of an absence of national standards and/or regulations in a relevant country, or a conflict between international standards or investors’ codes & standards, Verod and its portfolio companies comply with the more strict law, rule or regulation.
Financial resources required for implementation of Verod’s ESG Policy are incorporated in our annual budget and deal fees and expenses for potential investments always include estimates of ESG deal fees proposed to be incurred in relation to the relevant investment.
As a rule, external consultants are always engaged to perform, implement and oversee Social and Environmental Due Diligences for all Category A and Category B projects, whilst Social and Environmental Due Diligence studies for all Category C Projects will be conducted internally by the ESG Manager and Senior Investment Officer.
Verod provides the following categories of reports to its investors:
Verod’s ESG Policy reflects the firm’s fundamental beliefs as regards Environmental and Social issues. Verod however also values the opinion of portfolio companies, regulators, business partners and other stakeholders and aims to engage stakeholders continuously. This exchange of ideas provides relevant input for internal discussions and positioning on ESG issues.
To provide feedback as regards any aspects of the ESG policy or in relation to any environmental or social impacts of any Verod financed companies or projects, please contact Chigozie Ejimogu, Sustainability Manager at chigozie.ejimogu@verodcapital.com.
Verod’s ESG Policy is reviewed annually unless an earlier review is triggered by recommendations of the Investment Committee and/or the LP Advisory Committee of its Funds.
Verod is committed to safeguarding the health and safety of its employees, employees of underlying investee companies, and other stakeholders (including members of the host communities), by adhering to stringent policies on working conditions and labor rights. Verod insists on proper PPE for construction or manufacturing, adopts high standards in its food processing and handling, and typically implements processes to deal with waste management (including any hazardous waste), and protection of local resources such as groundwater and where appropriate, will also devise robust biodiversity conservation plans to protect local wildlife and ecosystem.
Verod typically aims to upgrade working conditions for jobs directly created or saved by Verod’s investments by standardizing terms of employment and offering better than minimum wages, including health care, pensions and related benefits. Verod actively supports the creation and expansion of indirect employment opportunities through partnership with local suppliers and service providers.
Verod promotes the use of cutting edge technology in operation of its investees companies. Verod has also developed or supported companies that provide a viable import-substitution which results in technology transfer and development of human capital. This in turn has led to further advancement of local industries through partnership with local providers, knowledge transfer and know-how sharing, which can act as a catalyst for technological advancement within these local industries.
Verod consistently promotes the adoption of energy-efficient technologies and processes in all of its investee companies and where possible, adopts eco-friendly energy sources that reduce environmental degradation, produce lower levels of CO2 emissions and are generally more cost effective.
As far as practicable, Verod strives to employ from within the local community in which it operates and is a believer in early engagement with the community by adopting a proactive stakeholder engagement plan. Verod has donated free medical services, participated in youth apprentices, provided support to local schools and built roads that connect rural areas. Verod has found that improving local trading links positively impacts the local economy (and livelihood) of its surrounding communities.
Verod is a major advocate of gender equality and women empowerment and strives to ensure that all of its investee companies operate as equal opportunity employers of labor with well-entrenched rules against discrimination. Verod has invested in partner companies that are run by women, or that have predominant female senior management teams.
West Africa Private Equity Deal of the Year 2022
West African Fund Manager of the Year
Small Cap Deal of the Year
Outstanding First-Time GP
Exit of the year Large-cap (GZI)