At Sarona, we invest for impact in global markets, and our responsibility for that impact runs through the exit itself, not just the years we are invested. The exit is where impact is most at risk: under new control, the ESG and social practices developed over the holding period can be reversed, often after we have gone. Making sure impact survives the handover is what we call a responsible exit, and a commitment we ask of our fund managers and of ourselves. Our latest case study sets out how we approach it, drawing on a recent exit in Tunisia.
What Is a Responsible Exit?
A responsible exit is an investment exit strategy that considers how a change in ownership affects a company’s ability to sustain its social or environmental impact alongside financial performance. Rather than focusing solely on return and timing, the investor evaluates implications for stakeholders, company practices, and impact continuity, and takes reasonable steps to support responsible stewardship after exit.
In a ‘responsible exit,’ investors seek to mitigate risks to an investment’s impact after exit.
— GIIN, Responsible Exits in Impact Investing
Sarona Asset Management is a signatory to the Operating Principles for Impact Management (the “Impact Principles”), a framework developed by the IFC and endorsed by leading development finance institutions and private investors worldwide. As a signatory, Sarona adheres to nine principles that govern how impact is managed across the investment lifecycle — from screening and structuring through to exit.
Principle 7 — Conduct exits considering the effect on sustained impact
For each investment, the impact investor shall, in good time before exit, assess the likely impact of the exit on the achievement of impact, and, where possible, take appropriate measures to support the sustained impact of the investment after exit.
As a signatory, Sarona publishes an annual Disclosure Statement verified by an independent auditor, confirming alignment with all nine principles. The Disclosure Statement and Independent Verification Statement are publicly available and provide transparency on how each principle is implemented across our fund-of-funds portfolio.
How Sarona Approaches Responsible Exits
Sarona’s approach to responsible exits is embedded in our investment process at the fund manager level. We expect the fund managers in our portfolio to demonstrate a clear, intentional approach to exit that considers impact continuity. This includes the following elements:
ESG Integration in Valuation
We integrate ESG factors into valuation discussions to capture risk mitigation, operational improvements, and value creation. Companies with strong ESG track records and institutionalized practices command better valuations and attract a broader pool of buyers with long-term perspectives.
Buyer Selection with ESG Standards
Our fund managers aim to identify buyers with strong ESG standards to support long-term sustainability beyond the ownership. Where possible, our fund managers assess buyer ESG policies, governance, and track record as part of the exit process. Strategic buyers, particularly those with complementary sector expertise and regional presence, are often preferred where they offer greater likelihood of continuity.
Structured ESG Handover
For investments where ESG and impact practices have been actively developed during the holding period, we encourage fund managers to conduct a structured ESG handover. This includes documentation of Corrective/Action Plans (CAPs), ESG monitoring systems, and key sustainability initiatives, ensuring the incoming owner has the information and context to continue and build upon existing work.
Assessing Impact Risks at Exit
Before or at exit, we ask fund managers to assess key impact risks, including:
- Risk of reversal of ESG or social practices under new ownership
- Potential changes to employment conditions, particularly for vulnerable workers
- Changes to product affordability or accessibility for low-income consumers
- Loss of community relationships or local sourcing commitments
- Continuity of certification standards (e.g., environmental, fair trade, quality)
Where material risks are identified, fund managers are expected to take reasonable steps, including negotiated covenants, transition support, or preferred buyer selection, to mitigate adverse impact outcomes.
CASE STUDY
Lilas: Scaling Affordable Hygiene Across Africa
A Responsible Exit Story — Tunisia, Africa
| Company | Société d’Articles Hygiéniques (SAH) — Lilas | Country / Region | Tunisia; subsidiaries in Algeria, Libya, Senegal, Côte d’Ivoire |
| Sector | Personal Hygiene & Consumer Goods | Fund Manager | RMBV |
| Fund / Vehicle | ANAF II | Investment Type | Growth Equity |
| Investment Period | 2015 – 2025 | Exit Type | Strategic Buyer Exit |
| Valuation at Exit | ~USD $100 million | MOIC1 | 2x |
5m+
Customers Served
5,659
Employees at Exit
20
African Markets
Company Overview
SAH Group was co-founded in 1994 by Tunisian entrepreneur Jalila Mezni, beginning as a producer of feminine hygiene products under the Lilas brand. The company was backed by the ANAF II fund, where Sarona is an investor, supporting continued regional expansion and operational scaling.
SAH’s model is rooted in the belief that access to hygiene products is essential to health, dignity, and gender equality. By manufacturing locally at scale, the company reduces costs for low-income consumers, expands availability in underserved communities, and challenges persistent cultural taboos surrounding menstrual hygiene. In doing so, SAH supports improved health outcomes, empowers women and girls, and promotes inclusive economic participation.
In 2024, Lilas held approximately 80% market share in feminine hygiene products and approximately 70% in baby diapers in Tunisia — outperforming global multinationals including Procter & Gamble, Unilever, Reckitt Benckiser, and Henkel. By 2025, Lilas served 5 million customers, a significant increase from 1.8 million in 2016.
Over the years, the Group expanded its product offering and operational footprint, adding subsidiaries such as SAH Ivory Coast, Azur Détergent, and Azur Papier, which enabled vertical integration across paper products through provision of cellulose wadding, the main raw material. Lilas entered the detergent market in 2019 and the personal care market in June 2024, further strengthening its position as a full-service household and personal care provider.
Lilas Cosmetics product launch (left) | Lilas product range (right)
Under the leadership of Jalila Mezni, SAH grew to employ over 5,600 people by 2025. During the investment period, Lilas created 3,829 jobs, approximately 30% of which were for women. In a country where unemployment remains close to 18%, the company has played a meaningful role in expanding access to formal employment, particularly for women and local populations near its production facilities and distribution networks.
Today, Lilas is a household name across 20 African markets, recognized not only for its product quality and affordability but also for its contribution to health, dignity, and economic opportunity.
Jalila Mezni has been repeatedly recognized by Forbes magazine as one of the most powerful and influential businesswomen in the Middle East and the Arab world. In the Forbes Middle East 2025 ranking of the 100 most powerful businesswomen in the Middle East, she was ranked at position 35.
Investment Thesis
Demand for hygiene and sanitary products in Africa is structurally underserved, particularly among women and low-income consumers due to affordability barriers and cultural stigma. SAH was well positioned to expand local manufacturing, reduce import dependency, and distribute affordable products at scale while improving gender equity and employment opportunities.
Investor Contribution
ANAF II supported SAH in building out its regional presence and operational foundations across multiple dimensions:
- Scaling production capacity across multiple countries
- Strengthening export logistics and distribution networks
- Enhancing corporate governance and operational controls
- Formalizing employee benefits and workforce training systems
- Advancing gender-sensitive product design and affordability strategies
“When we invested in SAH Group (Lilas), we believed that access to baby, feminine hygiene, personal care, and household products is essential to health, dignity, and everyday stability for families. As the company scaled across new markets, it not only expanded access to affordable, reliable products that allow women to participate fully in work and community life and households to plan for the future with confidence, but also created meaningful employment across its value chain. Supporting businesses that deliver these essentials at scale—while generating quality jobs—is a powerful way investors can create lasting, inclusive impact.— Khedija Tnani, Principal, RMBV
Community Engagement & Social Impact
Beyond its core product offering, Lilas has been a consistent presence in community health initiatives across its operating markets. The company’s engagement in campaigns such as Octobre Rose (Breast Cancer Awareness Month) reflects its broader commitment to women’s health and dignity.
Lilas Group — Octobre Rose breast cancer awareness campaign and Marathon de la Ville de Tunis sponsorship
These community touchpoints reinforce Lilas’s brand identity as a purpose-driven company — not merely a consumer goods manufacturer, but a platform for social change in the markets it serves.
Impact Performance at Exit
| Impact Metric | Exit Value / Status | Notes |
| Customers Served | ~5 million | Expanding modern hygiene access across 20 African markets |
| Women’s Health Impact | Leading feminine hygiene producer in North Africa | Addressing cost and stigma barriers in underserved communities |
| Geographic Expansion | HQ in Tunisia; Subsidiaries in Algeria, Libya, Senegal, Côte d’Ivoire | Distribution across North & Sub-Saharan West Africa |
| Total Jobs Supported | 5,659 (32% women) | Formal employment with maternity/paternity leave, health insurance, training |
| Jobs Created During Investment | 3,829 (~30% women) | Meaningful contribution to formal employment in a high-unemployment context |
| Environmental Stewardship | Water, ink, oil waste recycling; energy optimization | Reduced industrial footprint; ISO 14001 certified |
| Certifications | ISO 9001, ISO 22716, ISO 14001, ISO 45001, FSC | Quality, safety, environmental, and occupational health standards |
The Exit
The Lilas exit was to a strategic buyer and represented the largest private equity exit in Tunisia, valued at close to USD $100 million. Under RMBV’s ownership, Lilas grew from a domestic paper and hygiene producer into a regional multi-market operator, expanding into many African markets while adding detergents and personal care as new product pillars.
During the investment period, Lilas strengthened its resource efficiency, waste management systems, and workplace standards. These improvements were embedded through a Corrective/Action Plan (CAP) developed and owned by the management team, making ESG performance part of the company’s ongoing operating model rather than an externally-imposed obligation.
Because these practices are institutionalized within the organization — rather than being investor-driven — the environmental and broader ESG initiatives are expected to continue under the new strategic owner.
The exit process included a structured ESG handover, ensuring continuity of oversight, and accountability. This reflects Sarona’s commitment to Impact Principle 7: conducting exits in a manner that considers and, where possible, protects the sustained impact of the investment.
Lessons Learned
| What Worked | Challenges | Replicable Insights |
| Locally anchored production and strong distribution created resilience and supported rapid regional scale Affordable health & hygiene products produce immediate social returns Women-led leadership strengthened brand trust and market positioning Institutionalizing ESG through a management-owned CAP supported continuity at exit | Cost sensitivity means margins must be managed carefully in low-income consumer markets Regional expansion across diverse regulatory environments requires sustained governance investment | Addressing affordability and social stigma together can transform consumer behavior and unlock new segments Scaling dignity-enhancing products strengthens both impact and brand loyalty Strategic buyer exits offer the best prospect for impact continuity where buyer alignment is verified |
1 MOIC (Multiple on Invested Capital): A return metric calculated as Total Value Received ÷ Total Capital Invested, expressing how many times the original investment has been returned. A 2x MOIC means $2 was returned for every $1 invested.
