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Private Equity Investments In Nigeria; How it Works & How to Get Started Private equity investments are an alternative investment option in Nigeria that does not fall into conventional asset categories like stocks, bonds or cash. In recent years, private equity investments in Nigeria have steadily increased. In 2021, the African Private Equity and Venture Capital Association (AVCA) recorded total private capital deals in Africa at a value of $7.4 billion, with West Africa taking the largest share and Nigeria in particular, attracting 69% of the capital invested in West Africa. If you’re curious about private equity investments in Nigeria and how you can take advantage of growing opportunities in the Nigerian market, this article will give you a comprehensive overview of how private equity works, its advantages and how you can get started today. What is Private Equity? To begin, let’s define private equity and what makes it different from popular investment forms. Simply put, private equity is an investment partnership mostly involving institutional investors and wealthy individuals who buy shares or ownership stakes in private companies that are not listed on the stock exchange for public trading. How do Private Equity Investments in Nigeria Work? Private equity investments are managed by private equity firms that usually have an area of expertise and utilise specific investment strategies in managing and executing private equity funds. In Nigeria, private equity firms gather large amounts of funds from private equity investors comprising high-net-worth individuals and institutional investors like financial institutions, insurance companies, and pension funds. These investors commit substantial funds to the firm for a long period, receiving returns as the company becomes profitable, when a buyout occurs or when it is finally open for public trading on a stock exchange. Private equity investments in Nigeria usually have a fixed term of 10 years. Difference Between Public Equity & Private Equity Investments in Nigeria Here’s a quick highlight of the differences in operation between public equity and private equity investments in Nigeria: Benefits of Private Equity Investments in Nigeria Private equity investments are most attractive to investors with substantial funds to commit and who are interested in long-term deals. Some of the benefits enjoyed by private equity investors include Substantial returns as private equity firms managing their funds ensure they identify promising companies to invest in. Private equity investors enjoy better assurance as fund management is handled by private equity firms that have had proven success. Private equity investors can make strategic decisions and have control over the growth and direction of the company or private venture they are invested in. FBNQuest – The Leading Private Equity Investments Firm in Nigeria? FBNQuest is the alternative investments subsidiary of FirstBank of Nigeria and is one of the leading private equity investment managers in Nigeria. Since its establishment in 2003, the firm has invested over N20 billion in over 70 private equity companies. | |
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Target Prov.: All Provinces Target City : All Cities Last Update : Jan 20, 2024 4:08 AM Number of Views: 87 | Item Owner : FBNQuest Contact Email: Contact Phone: +234 01-2801340-4 |
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