Oasis Capital upbeat on Private Equity opportunities

… on course to raise US$100m-plus for SMEs

By Ebenezer Chike Adjei NJOKU

As global markets recalibrate amid evolving economic dynamics, Matthew Boadu Adjei, CEO of Oasis Capital Ghana is encouraging investors to explore “compelling opportunities” within the private equity and venture capital space.

He has argued that the robust potential for superior returns and strategic partnerships inherent in these categories make them ideal as tools for diversification, long-term growth and sustainable impact.

“Private equity represents a pivotal avenue for portfolio diversification beyond traditional investments,” Mr. Adjei told the B&FT, citing historical data that underscores its outperformance relative to public equities and bonds.

This year, global private equity and venture capital deal value grew in the first quarter by 5.1 percent to US$130.61 billion from US$124.30 billion for the same period in 2023, according to S&P.

“Our region, characterized by burgeoning sectors such as consumer services, education, healthcare, agribusiness, digital economy, and renewable energy, presents fertile ground for astute investors,” he added.

Drawing upon Oasis Capital’s successful management of impactful funds Mr. Adjei underscored the firm’s adeptness in identifying and nurturing high-growth opportunities.

Recently, Oasis Capital announced the successful first close of its US$100 million Oasis Africa Fund II (OAF II). The fund, which has secured US$33.3 million in capital commitments, is expected to reach its target by mid-2025.

This milestone follows the firm’s previous successes with the Ebankese Venture Fund (EVF) and Oasis Africa Fund I (OAF I), both of which fully invested in 21 SMEs across Ghana and Cote d’Ivoire.

The Fund  which follows Oasis’s investments across agribusiness, FinTech and education, among others – stands out for the strength of its investor base which includes prominent names such as Development Bank Ghana, GCB Capital, Stanbic Investment Management Services, ENO International, Investcorp Asset Management, CAL Asset Management, PETRA Advantage, PETRA Opportunity, Data Bank Asset Management, Standard Pensions Trust, and the Venture Capital Trust Fund (VCFT).

The VCTF, for instance has confirmed sentiments expressed by Mr. Adjei, with a recent emphasis of diversification, especially involving pension funds.

To date the VCFT has invested a cumulative GH¢173.2 million in 13 funds.

Building on this, the Oasis Capital CEO reasoned that private equity not only fortifies portfolio resilience but also catalyses sustainable economic development through strategic investments in local enterprises.

Addressing concerns surrounding risk in emerging markets, Mr. Adjei outlined Oasis Capital’s meticulous due diligence framework.

“Corporate governance is paramount in our investment ethos,” he stated, detailing rigorous assessments encompassing regulatory compliance, operational stability, and ethical standards.

“We equip our partner firms with robust governance structures aligned with global best practices,” he added.

Beyond financial metrics, Adjei underscored Oasis Capital’s commitment to inclusive growth and impact investing.”We recognise the transformative potential of businesses led by women, youth entrepreneurs, and sustainable enterprises,” he remarked, underscoring their pivotal role in driving socio-economic progress. “Profitability can coexist harmoniously with social and environmental responsibility.”

Looking forward, Adjei expressed optimism about the region’s economic trajectory, buoyed by demographic dividends, abundant natural resources, and proactive governmental initiatives.

“Our strategic imperatives prioritise ethical conduct and strategic foresight,” he further stated.

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