Africa Capital Alliance completes $299m exit from Aradel Holdings

Africa Capital Alliance (ACA) has completed a full exit from Aradel Holdings Plc through its flagship private equity vehicle, Capital Alliance Private Equity (CAPE) IV. The move ends a nearly decade-long investment in one of Nigeria’s leading indigenous upstream oil and gas companies.

Transaction and returns

ACA sold its entire 15.93 percent stake in Aradel, equivalent to 691.96 million shares, on 25 September at a market price of N559.5 per share. The divestment was valued at N387.2 billion. In dollar terms, the transaction delivered a 3.4x return, which translates to 17.1x in naira.

Including dividends received during the investment period, ACA’s total proceeds from Aradel rose to N438.2 billion ($299.7 million). The dividends alone amounted to N31.2 billion between 2018 and 2024, or $27.6 million in dollar terms. This pushed the fund’s overall return to 3.75x.

The divestment represents one of the largest energy exits ever recorded on the Nigerian Exchange (NGX), bringing to a close a long-standing partnership between ACA and Aradel.

Petrolin Ocean increases stake

A significant portion of ACA’s shares was acquired by Petrolin Ocean. The Geneva-based company previously held 8.11 percent of Aradel. It purchased an additional 173.79 million shares worth N96.4 billion, increasing its ownership to 12.11 percent.

This transaction makes Petrolin the single largest shareholder in Aradel. The company is part of the Renaissance Africa Energy consortium and has been involved in Aradel’s growth over the years. Its increased stake is expected to give it more influence over Aradel’s future direction.

ACA’s entry into Aradel

ACA first invested in Aradel, formerly Niger Delta Exploration & Production Plc, in 2016. At the time, it provided an $80 million loan facility at six percent interest. In 2018, the loan was converted into equity, giving CAPE IV a 16.5 percent holding valued at N23.8 billion.

Over the years, Aradel expanded its operations across exploration, production, and refining, consolidating its position in the upstream sector. The company eventually listed on the NGX in October 2024.

Following the listing, ACA sold 0.57 percent of its shares in a N19.8 billion deal aimed at boosting market liquidity. This reduced its holding to 15.93 percent before the final exit in September 2025.

Track record of exits

ACA has raised about $1.2 billion since its founding in 1998 and has built a track record of high-profile investments. Its early entry into MTN Nigeria through CAPE I, II, and III remains one of its most notable successes. At the time of ACA’s initial investment, MTN Nigeria was valued at $400 million. By the time CAPE I exited, the valuation had reached $13 billion, translating into an almost 33x return.

The firm reinvested in MTN Nigeria in 2007 and 2010, though the global financial crisis temporarily affected the valuation of its shareholding.

ACA has also invested in other sectors of Nigeria’s economy. In 2003, it committed $3.5 million into ABC Transport through CAPE I. By the time of its exit in 2018, the investment had grown to $51 million.

In insurance, ACA entered Cornerstone Insurance in 2007 and 2012 through CAPE II and III. It now controls 79 percent of the company through Banc-Assure Limited and Capassure Limited. At the current share price of N6.33, this stake is valued at about $61 million.

Significance of the exit

The exit from Aradel highlights the potential for value creation in Nigeria’s upstream oil and gas sector. It also shifts shareholder dynamics, with Petrolin Ocean now holding a decisive role in shaping Aradel’s next phase of growth.

For ACA, the exit demonstrates its ability to deliver returns in Nigeria’s frontier market while sustaining a track record of notable deals across diverse industries. The conclusion of this investment reinforces the firm’s standing as a leading private equity player in Africa.