CardinalStone Capital Advisers closes maiden private equity fund at $64mn

Nigerian-based private equity firm CardinalStone Capital Advisers has reached a significant milestone with the final close of its maiden private equity fund, amounting to a total of 64 million US dollars. The fund is designed to make equity investments into high-growth, small and medium-sized enterprises, aiming to support these businesses as they transition from small-scale operations to larger institutional entities. Co-founder and Managing Director, Femi Ogunjimi, sat down for an exclusive interview with CNBC Africa to delve into the details surrounding this achievement. Ogunjimi expounded on the purpose of the fund, highlighting its role in providing essential support for institutions seeking to expand their operations and scale up their businesses. Despite facing the challenges brought about by the COVID-19 pandemic and the subsequent lockdowns, the fund's resilience shone through as it navigated the tumultuous economic landscape. The firm had already made investments in companies like iFitness, Nigeria's leading fitness chain, prior to the pandemic. However, the unprecedented circumstances triggered by COVID-19 led to a temporary shutdown of iFitness's operations. Through collaborative efforts with the entrepreneur driving iFitness, CardinalStone Capital Advisers managed to weather the storm effectively. Post-lockdown, the company experienced a remarkable resurgence, with investment subscriptions soaring to 120 percent. Ogunjimi shed light on the selection process for the fund's investments, citing the paramount importance placed on the calibre of the team driving the businesses. Factors such as industry positioning, growth potential, and the trustworthiness of the team played pivotal roles in the decision-making process. The focus lies not only on the financial metrics but also on the team's ability to navigate challenges and drive the business towards success. Looking ahead, Ogunjimi outlined the firm's ambitious investment pipeline for the next two to three years. With plans to execute approximately six more deals within the fund, CardinalStone Capital Advisers aims to diversify its portfolio across various sectors including industrial, healthcare, financial services, education, FMCG, and agribusiness. The future appears promising for the firm, with five anticipated deals set to materialize by the end of the current year. In conclusion, CardinalStone Capital Advisers' successful closure of its maiden private equity fund underscores its commitment to fostering growth and development within Nigeria's entrepreneurial landscape. With a strategic vision and a robust investment strategy in place, the firm is poised to make significant strides in supporting high-potential enterprises on their transformative journey towards institutional excellence.