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News > Funds > Launches

Nigeria to launch SME Investment Fund and looks for fund manager

Africa Global Funds
Sept. 7, 2017, 1:13 p.m.
962

Word count: 397

The Federal Government of Nigeria has received credit from the International Development Association (IDA) and intends to apply $30m Naira equivalent of the proceeds towards the establishment and management of a commercially viable SME Investment Fund under the Growth and Employment Project. 

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The Federal Government of Nigeria has received credit from the International Development Association (IDA) and intends to apply $30m Naira equivalent of the proceeds towards the establishment and management of a commercially viable SME Investment Fund under the Growth and Employment Project. 

The Fund is expected to be a permanent capital vehicle domiciled in Nigeria.

The Fund will be sector agnostic, and investments will target Nigerian SMEs with a limit on investment size between $250k to $2m, usually structured as equity and mezzanine. 

The investee SME enterprises are defined as entities meeting any two of the following criteria: no more than $15m in assets, no more than $15m in revenue, and no more than 300 employees. 

Cash flows to the Fund can be reinvested. 

Manager compensation will be in the form of a fixed annual fee plus profit sharing. 

The consulting services include: i) final structuring of the Fund; ii) arranging for legal documentation and registration of the Fund and management company as needed; and iii) serving as manager of the Fund.

The Federal Ministry of Industry, Trade and Investment through the Growth and Employment project, now invites eligible fund management firms to indicate their interest in providing the Services. 

Interested Consultants should provide information, in no more than ten pages and responding to each of the shortlisting criteria, demonstrating that they have the required qualifications and relevant experience to perform the Services. 

The shortlisting criteria are: 

• investment experience and track record, including a minimum of $25m in assets under management and three years' audited operating experience as a fund manager; 

• credibility, consistency and clarity of the Manager's investment strategy in funds under management; 

• experience and cohesiveness of the Manager's team; 

• demonstrated ability to develop a pipeline, invest according to stated investment objectives, and supervise and exit investments; 

• ability to provide technical assistance to the Fund's investees; 

• willingness and ability to comply with World Bank and GoN policies covering areas such as environmental and social issues and anti-money laundering. 

Only shortlisted Consultants will be invited to respond to a Request for Proposal. 

A Consultant will be selected in accordance with the Quality and Cost Based Selection method set out in the Consultant Guidelines. 

Expressions of interest must be delivered by September 20, 2017. 

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