CardinalStone Capital Advisers (CCA), a West African focused private equity fund manager, announced recently that its CardinalStone Capital Advisers Growth Fund (CCAGF) has exited its investment in i-Fitness Nigeria Limited (iFitness), to Verod Capital Management Limited (Verod). Rand Merchant Bank Nigeria Limited (RMB) is pleased to have acted as Lead Financial Adviser to CCA and i-Fitness on the transaction.
iFitness is Nigeria’s leading and fastest-growing fitness chain. Established in 2015, iFitness has been providing ease of access to fitness services in Nigeria with low-cost gym facilities and highly qualified personal trainers, thereby providing a wholesome wellness experience. CCA, through CCAGF, invested in the fitness chain in 2019 with the vision of making fitness more accessible to a larger segment of the Nigerian market.
RMB played a crucial role in running a competitive sale process that ultimately resulted in the selection of Verod as the preferred investor and worked with CCA and iFitness to structure an optimal solution to complete the transaction. The transaction is a testament to the growth in the private equity space in Nigeria, where CCA successfully scaled and exited iFitness to Verod, a major private equity firm with a track record of adding value to businesses. Another distinctive aspect of the deal is that it represents CCA’s first exit from its maiden growth fund. RMB is proud to have supported CCA on this landmark transaction.
Chidi Iwuchukwu, Head of Investment Banking for Broader Africa at RMB commenting on the transaction, said “The transaction further solidifies RMB’s reputation as a trusted financial partner in unlocking value for investors within the evolving West African business landscape. With the investment from Verod, iFitness is well positioned to embark on the next phase of its growth journey.”
Bimbo Oyeyiga, Head of Corporate Finance speaking further on the transaction mentioned, “Leveraging our robust networks and credentials, RMB facilitated this transaction by navigating complexities with precision, thereby ensuring an efficient and sustainable solution was delivered to our client. This transaction demonstrates that despite the challenging macro backdrop, there remains capacity for exits in the West Africa private equity market.”
