Verod Capital targets $250 million for West African private equity fund as IFC proposes $15 million

Verod Capital, a Lagos-linked private equity firm, is seeking to raise $250 million for its fourth growth fund, targeting small- and mid-sized companies across West Africa, as the International Finance Corporation (IFC) proposes an investment of up to $15 million.

The proposed investment in Verod Capital Growth Fund IV LP includes a separate $10 million co-investment envelope to support investments alongside the fund. The project, disclosed by IFC on October 28, 2026, is expected to focus on businesses in Nigeria, Ghana, Côte d’Ivoire, Senegal and Cameroon.

Verod Holdings Limited sponsors the fund, and its affiliate, Verod Capital Partners III, manages it. IFC’s proposed commitment remains subject to approval, with a projected board date of November 27, 2026.

Verod Capital targets small and mid-sized businesses

Verod Capital Growth Fund IV is structured as a generalist private equity fund focused on providing growth capital to small- and mid-cap companies in West Africa.

The fund, registered as an exempted limited liability partnership under the laws of Mauritius, plans to deploy its committed capital predominantly across five markets: Nigeria, Ghana, Côte d’Ivoire, Senegal and Cameroon. Its proposed investment strategy aims to support businesses seeking capital to expand operations and strengthen market positions.

Verod Holdings Limited will sponsor the fund, while Verod Capital Partners III, a Mauritius-based fund manager licensed by the country’s Financial Services Commission, will oversee its management.

The fund manager is advised by Verod Capital Management Limited, an investment advisory firm established in 2008 by Danladi Verheijen and Eric Idiahi. It is headquartered in Lagos, Nigeria. The three entities collectively operate under the Verod name.

IFC proposes $15 million investment in Verod fund

IFC is proposing an equity investment of up to $15 million in Verod Capital Growth Fund IV, subject to a limit of 20% of the fund’s total committed capital.

The proposed commitment also includes a $10 million co-investment envelope, which would allow IFC to participate in selected investments alongside the fund.

The proposed support comes as private equity fundraising across West Africa continues to face structural challenges, including macroeconomic volatility, currency depreciation, limited exit opportunities and relatively low participation by institutional investors.

IFC expects its investment to help Verod secure a timely and credible first close while signalling institutional support to prospective investors. The proposed commitment is also intended to encourage greater participation by domestic institutional investors and strengthen the region’s private equity ecosystem.

Blended finance provides additional backing

The proposed investment is expected to receive support from IFC’s Concessional Capital Window for IDA21, through which the corporation may provide up to $5 million alongside its own-account investment.

The additional commitment is intended to increase IFC’s overall support for the fund and improve its ability to attract other institutional investors.

However, IFC’s disclosure states that the blended-finance contribution will be made on a pari passu basis with its own-account investment, meaning both commitments will be provided on the same terms. No concessional subsidy is expected under the arrangement.

The project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Finance Institutions’ private-sector operations, adopted by IFC and more than 20 other development finance institutions in 2017.