February 20, 2020

By Lynda Kiernan

Agri-Vie Fund I, a fund managed by pan-African private equity firm EXEO that is focused on opportunities for investment across the food and agribusiness sectors, announced its exit from portfolio company InteliChem.

Established in 2012 with a head office in Stellenbosch, South Africa, and operations across the country in Wellington, Viljoenskroon, Krugersdorp, and Philippi, InteliChem is a leading provider of crop solutions for a wide range of crops, specializing in plant nutrition and seeds that optimize output and quality, while mitigating risk and maximizing profitability.

Izak Strauss, partner with EXEO Capital, noted that now companies like InteliChem are key to achieving food safety in South Africa.

“By assisting producers to increase crop yields, retain quality standards and adhere to food safety measurement, InteliChem helps to ensure the long-term production of food on a sustainable basis,” said Strauss.

After six years of a successful partnership between EXEO Capital and the founder of InteliChem, Agri-Vie’s stake was sold to Masimong Group Holdings. Over the course of the past six years Agri-Vie was able to broaden the company’s networks and establish rewarding relationships in the sector while also providing InteliChem the capital it needed for growth and helping to identify and evaluate growth opportunities.

“The contribution of Agri-Vie as shareholder of InteliChem was very constructive. We managed to grow the business substantially during the investment period and Agri-Vie provided valuable strategic input as part of this process,” said Gideon Hefer, CEO, InteliChem.

Agri-Vie Fund I is managed by Cape Town-based EXEO Capital, which was launched in 2016 through a partnership between pan-African asset manager STANLIB and founders of the African food and agribusiness-focused private equity fund, Agri-Vie Investment Fund.

Today, EXEO has offices in Cape Town and Nairobi, and is a pan-African, mid-market private equity investment manager with operations in nine countries in sub-Saharan Africa, managing the highly successful $100 million Agri-Vie Fund I, and the $146 million Agri-Vie Fund II. 

Despite challenging conditions for InteliChem, including severe ongoing drought conditions across South Africa, and the sale price not being disclosed, Strauss noted that the return on investment realized through the sale aligned with those generally expected on private equity investments.  

“The growth of the business was definitely affected by the recent droughts in South Africa. However, we were satisfied with the final return on investment achieved,” Strauss concluded.

Taking a wider view, Strauss noted that the deal carried benefits for the greater good of South Africa and its people, saying, “Through transferring our interest in InteliChem to a pre-eminent black empowerment group, we were also able to contribute to economic transformation in the South African agribusiness sector while the company has gained a valuable partner.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.