The persistent breakdown of public infrastructure in Nigeria may become a thing of the past as NiFund, an investment management firm on the occasion of the Nigerian British Chamber of Commerce (NBCC) Mission to the United Kingdom, launches Nigerian Infrastructure Fund (NIF) with a target to raise $2 billion.
The Fund is expected to target investment opportunities in high growth sectors in Nigeria.
The NIF will 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.
Commenting on the launch of NiFund at the NBCC Mission to the UK, Aaron Smith, managing director, Pecora Capital, said, “Investment in the infrastructure sector is vital for the socio-economic 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 have 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.
Managed by Smith and Jeffrey Harpur, head of risk management, Pecora Capital, 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.
Pecora Capital, 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 an independent, regulated fund administrator will calculate net asset values quarterly. 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 will act as the Fund’s custodian.