NiFund launches infrastructure fund, targets $2b
On the occasion of the Nigerian British Chamber of Commerce (NBCC) mission to the United Kingdom, Nigerian Infrastructure Fund (NiFund), an investment management company targeting investment opportunity in high growth sectors in Nigeria, has launched the Nigerian Infrastructure Fund Segregated Portfolio (SP) with a target to raise $2 billion.
In addition to the Fund, NiFund will has also concluded plans to launch new funds, targeting Nigeria’s high growth sectors.
Nigerian Infrastructure Fund SP 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 optimized over the investment period.
Commenting on the launch of NiFund, Managing Director of Pecora Capital, Aaron Smith, said investment in the infrastructure sector is vital for the socioeconomic development of Nigeria and the aim is 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”, he added.
Nigeria’s rapid growth and urbanization 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 will 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.
Managed by Smith and Head of Risk Management, Jeffrey Harpur, 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.
Smith said 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.