Adiwale Partners, a private equity firm focused on Francophone West Africa, has picked up a minority stake in Maintenance Climatisation Technique (MCT) in what is believed to be its maiden deal.
Led by Lamine Koné, MCT is a six-decade-old company. It installs and maintains industrial, commercial and residential air conditioning systems in Ivory Coast. It also offers electrical engineering services and operates in 11 countries in French-speaking Sub-Saharan Africa, and is a local partner for global air conditioning major Carrier.
“Adiwale Fund I’s investment will accelerate the company’s growth, both in Cote d’Ivoire and across the region, with the offering of new products and services and will strengthen its current businesses,” said Vissého Gnassounou, managing partner at Adiwale Partners.
Adiwale was set up by Jean-Marc Savi de Tové and Vissého Gnassounou, former executives at another PE firm in the region called Cauris. It chases equity and quasi-equity investments of between €3 million and €8 million in small and medium enterprises in Cote d’Ivoire, Senegal, Mali and Burkina Faso. It may also invest in Benin, Togo and Guinea.
The fund targets consumer-oriented businesses (including health and education); business services (transport and logistics, IT, construction-related services) and manufacturing (chemicals and pharmaceuticals).
Jean-Marc Savi de Tové, managing partner at Adiwale Partners, said that the investment in MCT is in line with the PE firm’s ambition to support business services companies, especially those that address industrial clients. “This augments the complexity and autonomy of local industrial ecosystems.”
The deal comes about one-and-a-half years after the PE firm marked the first close of the fund at around €50 million. The fund has a target corpus of €75 million. It recently received a commitment of €9 million from International Finance Corporation (IFC), the private-sector investment arm of the World Bank.
The fund had previously attracted a number of LPs, including development finance institutions as well as commercial investors, from Africa, Europe and North America. These included the UK’s CDC Group Plc and the African Development Bank.
The coronavirus pandemic stretched the fund’s deadline and the final close is still pending.
Asafo & Co advised Adiwale Fund I on legal aspects. PwC (Cote d’Ivoire) advised the fund on the financial and fiscal due diligence and EBS Advisory (South Africa) on the environmental and social due diligence.