Firstly, what is a private-equity firm?
To simply put, a private- equity firm is an investment management company. Such companies focus on providing financial backing and investment funds in the private equity of startup or operating companies that are not publicly traded. Private equity firms function through various affiliated investment strategies such as:
Leveraged buyout
Venture capital
Growth capital
Private Equity Firms are also referred to as financial sponsors. Each firm will have to raise funds that will be invested in accordance with one or more specific investment strategies. Ideally, a private-equity firm will raise pools of capital or private equity funds which will then supply the equity contributions for the companies that need them. Private-equity firms gain profit through a periodic management fee. They also receive a share in the profits earned from each private equity fund managed. Private-equity firms are known to make long term investments. Many of these firms also focus on specific industries or investment areas where they have expertise.
In this article, we have gathered the top Private Equity Firms in Nigeria.
Top Private Equity Firms in Nigeria
Read more on them below and find out what services they offer.
Udo- Udoma & Bello Osagie
Shortened for UBBO, Udo- Udoma & Bello Osagie was founded by Senator Udoma Udo Udoma in 1983. Back then, the firm was called Udo Udoma & Co. Over time, the firm has evolved from its initial focus on the oil and gas sector into specializing in other areas and being a full-service firm. Udo- Udoma & Bello Osagie facilitates corporate and commercial business in Nigeria and the whole continent in at least 19 practice areas. The firm’s corporate practice is facilitated by a team dedicated to litigation and alternative dispute resolution. The company also has a secretarial department called Alsec Nominees Limited, which provides a full range of company secretarial services.
ARM Capital Partners (ARMCP)
ARM Capital Partners is a private equity fund manager that was established in 2009 by Asset & Resource Management Company Limited (ARM). ARM is renowned for being one of the most innovative and respected non‐bank financial institutions in Nigeria. ARM focuses on managing traditional assets and specialized funds. ARM Capital Partners also manages ARM Private Equity and ARM Private Equity International. Both firms focus on the growth and expansion of capital investments in Nigeria and other parts of West Africa.
ARM Capital Partners is based in Lagos, Nigeria and has a network of international contacts. This makes ARM Capital Partners suitable to work with because they understand investment issues as it pertains to Nigeria. The team comprises senior executives who have had years of significant experience in the private equity business.
Quantum
Quantum group was incorporated on the 20th of July 2010. Quantum Capital Partners (a part of the group) exists as a private equity firm that focuses on investments and acquisition of companies in the Financial Services sector, Technology sector, Real Estate sector and Philanthropy. The group has significant business operations in Sub-Saharan Africa. Quantum also specializes in structured lending.
Verod
Verod is an investment boutique that was founded in 2008. The group operates out of West Africa. The group is a leading West-African private equity investor seeking to partner with firms and fast-growing companies that have the potential to become large, dominant and sustainable enterprises. The group is actively involved in various sectors such as light manufacturing, consumer goods, business services, agriculture, education, healthcare and financial services. In 2014, Verod successfully raised capital that exceeded its original target fund size. This launched Verod Capital Growth Fund II as the largest first-time fund in Nigeria’s history. Verod is backed by a variety of foreign and institutional investors such as pension funds, sovereign wealth funds, insurance companies, asset management firms, family offices and development finance institutions. The group also has managers who are well experienced in managing funds across various markets.
RMB
RMB is a subsidiary of FirstRand Limited. RMB Ventures and RMB Corvest provide flexible equity and debt funding packages. Both companies provide equity capital to assist their clients with the following:
Leveraged Buy-outs
Management Buy-outs
Public transactions
Private transactions
RMB team offers a wide array of managerial skills, marketing and sales expertise across various industries. RMB provides consultancy services by spending time with client companies in developing business strategies, optimizing capital structure and facilitating sales opportunities that will add significant value to the company. The RMB team also helps with acquisition, expansion and capital for equipment. The team is also committed to long term, mutually beneficial relationships with their clients by ensuring the interests of investors align with that of the company management teams. The company boasts of sustainability of enterprises for the businesses they partner with.
Cardinal Stone
Cardinal Stone (CCA) was established in 2016. It is an independent investment banking firm in Nigeria. The group was founded as a spin-off from Cardinal Stone partners. Before the spin-off, the CCA team operated as the Principal Investments Division of Cardinal Stone Partners where they specialized in investments across the financial services, building materials, agribusiness, logistics and storage services sectors of the Nigerian economy. Today, the CCA team has amassed significant experiences in investment and have also built a strong network both locally and internationally.
Cardinal Stone Capital Advisers (‘CCA’) is a Private Equity Investment Adviser which is based in Lagos State, Nigeria. Cardinal Stone Capital Advisors invests in high potential Small and Medium scale enterprises. The company singles out SMEs with huge potentials to become champions in their fields. Not only this, but Cardinal Stone Capital Advisers also invests in companies that they envisage will be able to add significant value to the development of the nation and the economy of the region.
The company achieves its goals through investment strategies, market insights, and resourceful approach to investment execution and portfolio company support. The firm seeks to create sustainable value for their investor and investee partners.