Nigerian based Private Equity firm, Verod Capital Management has acquired a “minority” stake in Greensprings, one of Nigeria’s leading private schools. This was made known in a press release issued by the company.
Greensprings is a high-end private school in Lagos, Nigeria and attracts kids from Nigerians in the middle and upper middle class section of the working population. The schools are located in Anthony and Lekki.
Verod Capital did not disclose the purchase considering for the deal and neither did it reveal what percentage of equity it acquired.
Verod as a leasing private equity firm in Nigeria has made a name for itself by acquiring strategic business in the traditional sectors of the economy, avoiding the lure of tech startups. Their business model suggest that they take equity positions in maturing business, with years of proven cash flow and in most cases proven profitability.
Verod for example, as an equity stake in GZ,. GZ Industries (GZI) was West Africa’s first aluminium beverage can manufacturer and currently has two factories in Nigeria and is developing additional factories across Africa. They also have an interest in Niyya Farm Group Limited, a holding company of an agro-processing business – one of Nigeria’s leading producers of fresh fruit juice and dairy products. Verod Capital also owns interest in Union Trustees and CSCS.
See press release below;
Verod Capital Management, a leading private equity firm based in Nigeria, has agreed to acquire a minority stake in Greensprings Educational Services, according to a statement released on Monday.
The fund manager said the investment will be made through its Oreon Education investment vehicle and will enable Greensprings restructure its capital base and fund growth initiatives.
“Greensprings has a long track record of academic excellence and is led by an experienced CEO and management team,” said Eric Idiahi, Partner at Verod. “We believe in the company’s growth potential and are thrilled about its expansion plans both in the traditional education space and in ancillary services – supplementary education and teacher training.”
Founded in 1985, Greensprings provides pre-¬primary, elementary, secondary and post-¬secondary schooling for both day and boarding students. The school has a blended curriculum that prepares students for both local and international entrance exams.
Greensprings’ campuses in Anthony and Lekki (both in Lagos, Nigeria) have grown from 3 to 2,270 students. The school is now recognized as one of the top schools in the country, with the potential to rapidly expand across West Africa.
“We are pleased to have Verod as a partner and look forward to working with their team to continue providing educational excellence to our students and building new opportunities for growth in Nigeria’s education sector,” said Lai Koiki, Founder and CEO of Greensprings. “Verod has extensive experience supporting the development of companies and we are confident that their resources, network and insights will help us achieve our long-term goals.”
Verod said its Oreon Education vehicle was set up to take advantage of the continued growth in demand for quality K‐12 education in West Africa. And due to its favourable socio-¬demographic environment, Nigeria possesses an attractive market for the K¬‐12 education segment in Africa.
The private equity firm said it expects that the segment will continue to grow owing to increasing affordability for the middle class and the Nigerian government’s increasing role as a steward and enabler rather than a provider of public education.
Founded in 2008, Verod Capital Management invests equity and equity-linked capital in growth companies across various sectors including education, financial services, consumer products, manufacturing and agribusiness. The private equity firm has invested in 14 companies to date. The Greensprings investment is Verod’s sixth investment from its sophomore fund, Verod Capital Growth Fund.