By Peter Egwuatu
Nigeria is said to be second in the ranking of African countries’ attractiveness for Private Equity, PE, investments over the last three years.
The Chief Executive Officer, FMDQ Group, Mr Bola Onadele, who disclosed this, also said that the global PE Asset Under Management (AUM) has hit $4.5 trillion in the last 10 years.
Speaking at the Coronation Merchant Bank interactive session webinar with the theme: “Capital mobilisation through the private markets,” yesterday in Lagos, Onadele said that part of these global funds was finding their way into Africa, especially Nigeria.
He, however, urged private companies in Nigeria to tap into the opportunities in the market for growth and development.
“As is the case in global private markets where private equity accounts for 60 per cent of total AUM, private markets in Africa and Nigeria is dominated by the PE segment,” he added.
Onadele, who was represented by the Head, Private Capital, FMDQ Private Markets Limited, Mr Yemi Osinubi, said that: “Recent survey show that Nigeria ranks second in the attractiveness of African countries for PE investments over the last three years. Healthcare and life sciences, technology, and agribusiness were viewed as the most attractive sectors over the next three years.”
Onadele attributed the shift to private capital to the global liquidity crisis of 2008 and 2010.
In his remark, Managing Director of Coronation Merchant Bank, Mr Banjo Adegbohungbe, said : “The interactive session was instituted to stimulate discourse and to clarify an enhanced pertinent economic and societal issues as well as develop credible and workable solutions to common challenges.
“It is our intention to continue to facilitate productive engagements like this with relevant stakeholders in order to generate solutions for critical sections of the economy and to add value to our existing and potential customers alike.”