Syntaxis Capital Africa, in collaboration with Afrinvest Asset Management Limited, has unveiled an NGN 12-billion (USD 5,517,242) private equity fund to meet the funding needs of Small and Medium Scale Enterprises (SMEs) in sub-Saharan Africa.
The scheme, which is available for SMEs looking to grow, is expected to attend to many sectors including, manufacturing, agri-processing, healthcare, education, and financial services.
In a bid to bridge the gap for financing in the SMEs sector, the Afrinvest West Africa has partnered Syntaxis Capital Africa to float a N12B private equity fund, which is expected to be injected into the SMEs in various sectors of the Nigerian economy. https://t.co/zFgOwWYk9i
— SMETraction 🇳🇬 (@SmeTraction) January 16, 2019
SMEs are the lifeblood of a majority of economies, but access to funding has always been the drawback in cases too many to mention
Group Managing Director, Afrinvest, Ike Chioke, said during the launch, that the focus of the fund is to deepen and widen financial inclusion for SMEs by providing patient capital.
Partner and Managing Director, Syntaxis Capital, Adesuwa Okunbo, said: “We see the fund as a vehicle for rapid economic growth and development. By providing access to capital to SMEs, we are giving businesses the power to scale their activities, which will, in turn, increase productivity, create new jobs, and generate taxes for the government.
“In addition, the fund has a unique focus on supporting women-owned or managed businesses in order to improve the ratio of women in the workforce and enhance the standard of living across board.”
2019 begins with a N12Bn bang as we partner with Syntaxis Capital Africa to provide much needed funding to SMEs through a Private Equity Fund called the Syntaxis Nigeria Growth Fund.
— Afrinvest (@Afrinvest) January 14, 2019
Speaking on the benefits of the fund, Managing Director, Afrinvest Asset Management, Ola Belgore, said: “the fund has been constructed as a portfolio of cash-generative African private equity investments diversified by sector and geography. Qualified investors can, therefore, expect a high level of contractual income combined with significant minority equity stakes, superior risk-adjusted returns, strong equity upside, and capital preservation.”
Syntaxis Capital Africa, with a 30-year track record of successfully managing private equity funds, is sponsoring the fund. The group has raised up to $300 million from global institutional investors and deployed a duo of private equity funds in other emerging markets.
Afrinvest Asset Management Limited, who is the fund manager, is licensed by the Securities and Exchange Commission (SEC), Nigeria, as a portfolio manager with several listed funds including the Nigeria International Debt Fund; as well as the Afrinvest Equity Fund.