NiFund to Raise $2bn for Infrastructure Devt

Crusoe Osagie
An investment management company, Nigerian Infrastructure Fund (NiFund), targeting investment opportunities in high growth sectors in Nigeria, on Tuesday, launched the Nigerian Infrastructure Fund with a target of raising $2 billion.

In addition, NiFund will look to launch new funds targeting Nigeria’s high growth sectors.
Making the announcement on the occasion of the Nigerian British Chamber of Commerce (NBCC) Mission to the United Kingdom, NiFund said it would have a seven-year investment horizon with up to two additional years for asset divestment.

“NiFund will solicit commitments from both qualified private investors and development finance institutions. NiFund will employ a core satellite approach in order to ensure that capital is optimised over the investment period,” NiFund said in a statement.

Commenting on the launch of NiFund at the NBCC Mission to the United Kingdom, the Managing Director of Pecora Capital, Aaron Smith, said: “Investment in the infrastructure sector is vital for the socioeconomic development of Nigeria and we will aim to attract foreign investors to fund critical national infrastructure projects with an overarching aim to deliver a strong return on investments. Through infrastructure development in Nigeria, NiFund will act as a catalyst for future growth and prosperity in the country.”

Nigeria’s rapid growth and urbanisation has resulted in enormous demand for sound and sustainable infrastructure development throughout the country. To actively participate in this growth and meet the increasing demand for suitable infrastructure, NiFund will invest in equity stakes in private infrastructure projects across various sectors including power, transport and communications.

In addition, the fund would also aim to tap into projects that strengthen institutions, human capacity, critical processes, tools and foundational services such as logistics systems for delivering agricultural products to markets. It will provide investors unparalleled potential returns while substantially reducing risk through robust deal flow and proprietary project selection methodology, portfolio diversification and solid corporate governance.

NiFund is designed to provide investors with an opportunity to make substantial returns in one of Africa’s fastest growing economies. Long term private equity investors have the opportunity to capture super-normal risk adjusted returns. NiFund maintains strict risk management guidelines, including asset diversification and best practices for corporate governance to provide international investors with a conservative vehicle to unlock the potential of Nigerian growth.

Pecora Capital Limited., which also serves as the Fund’s Investment Manager, will provide the global alternative investment expertise and has collaborated with Heart African Investments (HAIL) to source transactions and provide portfolio management services on its behalf in Nigeria.

Furthermore, the fund’s asset valuation policy dictates that net asset values will be calculated quarterly by an independent, regulated fund administrator. For this purpose, NiFund has appointed Trident Fund Services with more than $30 billion in assets under management and $5 billion specifically in African Infrastructure Funds. The Fund has appointed KPMG as the external auditor and Stanbic IBTC, a subsidiary of Standard Bank, will act as the Fund’s custodian.

“We are witnessing a strong commitment from the Nigerian government to develop the public infrastructure and hence all efforts are being made to attract FDI into this sector. Nigeria offers a great proposition to foreign investors with its vast natural resources, arable land, and a young, entrepreneurial population,” concluded Smith.