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Verod Capital Invests in Niyya

Nigerian investment firm, Verod Capital has bought a stake in Nigeria-based consumer food production company Niyya Food and Drinks.

We will be using the capital to fund expansion, which includes increasing primary and secondary production capacities. The company plans to increase the automated processing of fruits and dairy products into fruit juice and yoghurt.

Niyya will also be expanding the volume of fruits grown on its farms, including mangoes, guavas, oranges and pineapples.

Niyya is the fund manager’s second investment from Verod Capital’s Growth Fund II. The fund is targeting $100 million at final close.

Verod’s portfolio companies include South Africa-based upstream oil and gas exploration company Sacoil, a 2013 investment.

Prior to that, Verod had exited Nigeria’s GZI Industries, an aluminium can manufacturer.

The investor has also previously bought stakes in manufacturing company Rotoprint and media company Spinlet – both based in Nigeria. Verod had backed both companies in 2011.

Verod invests between $3m and $15m per deal, holding the assets for between 4 to 7 years. The private equity investor targets an IRR of 35% per deal.