Cauris Management sold its stake in Petro Ivoire

Cauris Croissance, a fund managed by Cauris Management, the West African fund manager has sold its stake in Petro Ivoire, the largest local operator of downstream oil and gas assets in Cote d’Ivoire. The sale generated proceeds equivalent an annualized return of 23% for Cauris Croissance. The initial investment of 2.2 billion FCFA including a co-investor alongside Cauris Croissance occurred in 2006 and was aimed at reinforcing the company’s positioning as well as strategically diversifying into bottled gas. The network of petrol stations grew between 2006 and 2011 by 33%, positioning the company as the third largest operator of petrol stations. The company also invested, in 2007, in a butane gas filling plant. Petro Ivoire has been the first locally-owned company to invest in such plant. This helped in reducing the important capacity constraints of the sector. In four years Petro Ivoire has conquered 19% of the market for bottled butane gas.

After just over five years of partnership, it is gratifying for Cauris Croissance to see that the sale occurs at a time when Petro Ivoire has definitely won a prominent place in the hydrocarbon sector in Cote d’Ivoire. In its pioneering approach, it will soon make a sizeable investment in gas storage capacity to further debottleneck the sector. Cauris Croissance is also proud to have accompanied the management transition within the firm, where the founders were able to promote a new class of capable managers thus ensuring the sustainability of the company.

Commenting on the sale, Mr. Mathieu Kadio-Morokro, founder of Petro Ivoire stated: The partnership between Petro Ivoire and Cauris not only provided us with resources to fund our development program but also helped to strengthen the governance of our company by the establishment of a strategic body that has been key in improving our vision and has been a place for very enriching discussions. We would have liked to continue the partnership but the constraints of managing an investment fund require them to withdraw.