New book offers insights on bridging gap between business owners, private equity investors

A new book, ‘The Law & Practice of Private Equity’ which was unveiled in Lagos recently is out to offer insights on how to bridge the gap between business owners and private equity investors, the author and promoter of the book has explained.

Fabian Ajogwu, a Professor and Senior Advocate of Nigeria (SAN), the author of the book, explained further that the book, published by Thomson Reuters, is also out to stir discussions on private equity as the common thread of the book was the legal and practical issues in private equity.

“The book emphasises the business and legal considerations that should be of interest to investors and investees, and onlookers alike,” Ajogwu said at the unveiling event.

According to the author, businesses in the world today face the blessing and problem of obtaining valuable financing. “The fight to get funding for a business venture often leads to massive debt for a fledgeling enterprise and its many disadvantages,” he noted.

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He was of the view that the entrepreneur’s role has shifted from being an inventor of product/services to a value creator following the paradigm shift from an industrial society to an information society.

Because of this, he said, the focus of entrepreneurial ventures has shifted towards creating viable business models rather than superior products/ services, adding that private equity has come in to fill this financing gap and provide itself as a credible financing option for businesses in emerging markets

Tariye Gbadegesin, managing director and chief investment officer, Arm-Harith Infrastructure Fund Managers, stated that the book could not have come at a better time as, according to her, “we can’t build the economy on the debt alone, and this has given rise to other financing options.”

In his remarks about the advantages of private equity, Anthony Emeka Ogbechie, the Chief Financial Officer, Capital Alliance Nigeria Limited, said, “executing capacity of relevant stakeholders, corporate governance, as well as the commitment of investors to the success of investee companies, are the advantages of utilising private equity”.

He also stressed the importance of working with legal experts in every step of negotiating and closing financing deals, as doing otherwise has dire consequences.

The book has been commended by many as an invaluable resource and guide for SMEs owners and entrepreneurs with brilliant startup ideas, but are torn between choosing traditional financing sources, public stock, and private equity to meet their funding needs.