PCM Capital Partners exits its investment in leading Ivorian oil and gas player

PCM Capital Partners (“PCP”), managers of the West Africa Emerging Growth Fund (“WAEMGF”) are pleased to announce the Fund’s exit from its investment in Petro Ivoire, a leading player in the downstream oil and gas sector in Cote d’Ivoire. This exit, the first from the WAEMGF portfolio, was structured as a Leveraged Management Buy Out (“LMBO”) transaction led by Vantage Capital.

Founded in 1994 by Mathieu Kadio-Morokro, Petro Ivoire is one of the top 3 distributors of oil and gas products in Cote d’Ivoire. The Company distributes refined products (super, gasoil, etc), LPG, as well as lubricants under its own brand. With an 11 % market share, Petro Ivoire is ranked (in terms of volume of oil distributed in Cote d’Ivoire) behind Total Cote d’Ivoire and Vivo Energy Cote d’Ivoire and number 2 in the LPG segment with a 31% market share. The Company also has a 40% stake in Société Africaine d’Entreposage de Produits Pétroliers (“SAEPP”).

In line with the Fund Manager’s investment philosophy, WAEMGF first invested growth capital in February 2012 to support a local, indigenous entrepreneur through its growth and development phase. Together with Amethis who are also exiting this investment, PCP has driven the value creation process of the Company by providing additional expansion capital and ensuring environmental, socio-economical and governance best practices.

Commenting on the transaction, Michel Abrogoua Founding Partner of PCP, explained that “Our capital and strategic approach with Petro Ivoire perfectly illustrates our philosophy which has contributed to the Company’s organic growth. Its positioning as an Ivorian oil and gas market leader is the result of a clear and ambitious strategy, a visionary management and an efficient governance framework. With this exit, which enables the founding family to regain majority shareholding, we are confident in the Company’s future.” Source: AVCA