Private Equity, Hedge Fund deal advisor sees positives in Nigeria market

Kroll –a leading global provider of risk solutions with over two decades of operation in sub-Saharan Africa (SSA) – said more and more investors looking for sustainable growth in emerging economy are adding Nigeria to their portfolios, as the country’s economy is becoming a popular destination for value-driven investments.

This is the message from the world’s leading business intelligence and risk consulting firm which helps clients navigate through investment opportunities. 

Currently, Kroll works for African government and government agencies, banking and financial services, international and African corporate, private equity (PE) and hedge funds, donor and development finance institutions, and high net worth individuals (HNIs).

Mark Simmonds, senior consultant, Europe, the Middle East and Africa (EMEA) who led Kroll’s team to Lagos recently said private equity (PE) investors have very significant interest in Nigeria.

Kroll’s recent work in Nigeria has included an overseas investment advisory project for a Nigerian business investing in India and the Middle East. The company was also recently instructed to identify and profile shareholders in a business venture in Nigeria on behalf of a Nigerian government agency.

“They are raising significant amount for investment in Africa with Nigeria as major target because the market has been successful in terms of returns for private equity investors. We are here to ensure that PE investors understand the market they are coming into,” Simmonds said.

“International and local investors are attracted by Nigeria’s increasingly diverse economy. There is a visible growth in consumer markets which has resulted in the development of a vibrant entrepreneurial workforce and is contributing to Nigeria’s economic progress” he added.

“We believe Nigeria is right at the forefront of Africa’s rising story. I am very excited about the future prospects of Nigeria, looking at the country’s rebased GDP, significant growth in non-oil sector, increasing and growing economic power of the middle class –all these create opportunity for investing. This is in addition to peaceful election and seamless transfer of power which is now an example across the globe. All these give investors confidence about the Nigerian economy including private equity investors and hedge funds.”

Andrew Sekandi, senior director, Kroll said “More and more Nigerian companies are looking to raise funds in other markets. In establishing joint venture (JV) businesses, we help clients understand how these economies and their political environment operate.”

However, the risk solutions provider observed that Nigerian has its unique challenges like a much weakened currency and a low oil price which is affecting government revenue –which means investors remain cautious. They believe that these and other factors present local and international investors with a complex set of challenges and opportunities that require expert guidance to surmount.    

Iheanyi Nwachukwu