Thursday, April 18, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Investors

CDC backs Nigerian fund with $25m

Anna Lyudvig
Dec. 3, 2018, 2:04 p.m.
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Word count: 314

CDC Group,the UK’s development finance institution, has committed $25m to the Synergy Private Equity Fund II, a Nigerian fund backing small and medium-sized businesses. 

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CDC Group,the UK’s development finance institution, has committed $25m to the Synergy Private Equity Fund II, a Nigerian fund backing small and medium-sized businesses. 

Nick O’Donohoe, CDC’s Chief Executive, said: “Nigeria plays a key part in our strategy of partnership and investment for economic growth in West Africa. CDC’s support for Synergy Fund II will help to boost Nigeria’s high-growth SMEs, supporting local entrepreneurs, job creation and economic development. 

Synergy II invests in high-growth SME businesses in Nigeria and its West African neighbours. Supporting SMEs is central to CDC’s mission to help build sustainable businesses, create jobs and improve economic prosperity.

The CDC’s investment enabled Synergy II to raise a total of $232m of capital; the Fund is targeting a total of $300m. 

CDC is also an investor in Synergy’s first fund.

In addition, CDC said it will open a regional office for West Africa in Lagos in early 2019.

CDC has been active in Nigeria for 70 years and currently has almost $400m invested in the country. 

Its portfolio of 82 businesses support 41,000 direct jobs. 

Recent CDC investments in Nigeria include Afreximbank, Jumia, Indorama and Azura Power.  

CDC is part of a growing UK Government ‘Prosperity’ offer to support Nigerian growth and poverty reduction, working alongside UK Aid’s development, trade and economic teams.

“We recently announced our ambition to invest up to $4.5bn across Africa over the next four years. This latest $25m commitment and new office launch builds on our recent momentum in Nigeria and demonstrates our commitment,” said O’Donohoe.

CDC has played a pioneering role in supporting the private equity industry in Nigeria, which channels growth capital to companies. 

Twenty years ago, CDC backed Nigeria’s first private equity fund, the Capital Alliance Private Equity Fund I (CAPE I) from African Capital Alliance and has invested in all five of its subsequent funds. 

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