The ARM-Harith Infrastructure Fund (ARMHIF) has raised $91m at the first close from AfDB and a number of Nigerian pension funds, according to ARM-Harith Infrastructure Investment, a joint venture between Asset & Resource Management Company (ARM) and Harith General Partners of South Africa.

“We see tremendous infrastructure investment opportunities throughout West Africa. Having the equity capital to deploy is an important part of the equation,” said Opuiyo Oforiokuma, Managing Director, ARM Infrastructure.

Both ARM and Harith committed $25m to the fund, whereas one of the anchor investors in the fund is the African Development Bank, which made a $20m equity investment in October 2013.

Mouhamadou Niang, Acting Director of the AfDB’s private sector department, said: “The Bank’s support to ARMHIF will contribute toward the delivery of modern and reliable infrastructure that will reduce the cost of doing business and enhance the region’s competitiveness.”

AfDB has been instrumental in attracting the interest of other investors, including Nigerian pension funds such as Chevron CPFA, Progress Trust CPFA, and Total E&P CPFA, which also made commitments to the fund.

“Having a AAA-rated international organization like the AfDB in our investor group, and Nigerian Pension Funds gaining infrastructure exposure for the first time via our Fund, is a solid start," said Oforiokuma.

ARMHIF is an infrastructure private equity fund based in Nigeria with a targeted fund size of $250m.

The lack of efficient infrastructure is a major obstacle to doing business in West Africa.

Better infrastructure in the region would create an enabling environment for economic growth by competitiveness of local production, promoting foreign direct investment and facilitating trade.

The fund will invest in assets across a range infrastructure sectors including energy, transport, ICT, water and utilities.

ARM has formed a partnership with Harith, an experienced infrastructure investment manager on the continent, to manage the Fund.

Harith already manage the $630m Pan-African Infrastructure Development Fund (PAIDF).