The private equity sector in Nigeria plays a crucial role in driving the nation’s economic growth by providing essential capital to businesses across various sectors.
The top five private equity funds in Nigeria, considering assets under management (AUM), AUM growth, and investment efficiency, are as follows:
CAN PRIVATE EQUITY FUND LP – Managed by CAN Fund Manager Limited
PIONEER LLP FUND – Managed by CAN Fund Manager Limited
VEROD CGO II B L.P. FUND – Managed by Verod Advisory Services Limited
ARM PRIVATE EQUITY FUND – Managed by Arm Capital Partners
NIG. HEALTHCARE DEV. FUND – Managed by capital trust investment ltd
In 2023, the performance of these funds has been closely monitored by investors, analysts, and industry stakeholders.
Also Read:
- Transcorp Plc report robust results H1’24, suggesting undervalued stock
- Dangote Refinery cutting back on crude oil imports from US.
- Nigeria owes NNPCL N4.56 trillion for selling petrol at subsidized price
This ranking, based on data from the Securities and Exchange Commission (SEC) of Nigeria, highlights the top 5 private equity funds in the country, ranked based on Assets Under Management (AUM).
AUM is a key metric that reflects the total market value of a fund manager’s assets. It indicates the fund’s size, investor confidence, and the ability to attract and manage capital.
In addition to AUM, this analysis also considers AUM Growth Rate, Investment Efficiency (measured by the Investment Utilization Ratio), and Investment Value Growth Rate to provide a comprehensive overview of each fund’s performance.
This article examines the top performers of 2023, offering detailed insights into the financial health, strategic approach, and market impact of each fund. Whether you are an investor, analyst, or industry stakeholder, this ranking serves as a guide to understanding which funds are leading the way in Nigeria’s competitive private equity landscape.
1. CAN PRIVATE EQUITY FUND LP – Managed by CAN FUND MANAGER LIMITED
Target Size: USD 150,000,000
Committed Capital: NGN 48,018,700,000
Drawdown: NGN 24,284,203,898
Investment Value: NGN 49,543,337,522
Structure: Partnership
AUM: NGN 52,324,443,071
AUM Growth Rate: +138.08%
Investment Utilization Ratio: 94.68%
Investment Value Growth Rate: +134.47%
Topping the ranking is CAN PRIVATE EQUITY FUND LP, with an AUM of NGN 52,324,443,071. This fund leads the market with its substantial AUM and a robust Investment Utilization Ratio of 94.68%.
The fund’s investment value saw a remarkable growth of +134.47%, demonstrating its ability to effectively deploy capital and generate significant returns.
The AUM Growth Rate of +138.08% further solidifies its position as the leading private equity fund in Nigeria, showcasing strong investor confidence and efficient management.
2. PIONEER LLP FUND – Managed by CAN FUND MANAGER LIMITED
Target Size: USD 100,000,000
Committed Capital: NGN 35,163,330,000
Drawdown: NGN 7,651,291,182
Investment Value: NGN 5,115,907,048
Structure: Partnership
AUM: NGN 5,192,616,018
AUM Growth Rate: -2.64%
Investment Utilization Ratio: 98.52%
Investment Value Growth Rate: +38.16%
PIONEER LLP FUND ranks second with an AUM of NGN 5,192,616,018. The fund’s Investment Utilization Ratio is notably high at 98.52%, reflecting effective asset deployment. The investment value grew by +38.16%, indicating strong performance in capital management, even though the overall AUM slightly decreased (-2.64%). This suggests that while the fund is highly efficient, it faces challenges in attracting new capital or retaining existing investments.
3. VEROD CGO II B L.P. FUND – Managed by VEROD ADVISORY SERVICES LIMITED
Target Size: USD 6,155,000
Committed Capital: NGN 2,378,413,900
Drawdown: NGN 1,838,423,223
Investment Value: NGN 2,235,972,182
Structure: Partnership
AUM: NGN 4,711,504,835
AUM Growth Rate: +68.04%
Investment Utilization Ratio: 47.46%
Investment Value Growth Rate: -4.68%
VEROD CGO II B L.P. FUND ranks third with an AUM of NGN 4,711,504,835. The fund achieved a significant AUM growth rate of +68.04%, although its Investment Utilization Ratio of 47.46% indicates a more conservative approach to deploying capital. The slight decrease in investment value by -4.68% suggests room for improvement in capital allocation, but the growth in AUM reflects strong investor confidence.
4. ARM PRIVATE EQUITY FUND – Managed by ARM CAPITAL PARTNERS
Target Size: USD 150,000,000
Committed Capital: NGN 7,502,699,728
Drawdown: NGN 3,246,731,579
Investment Value: NGN 2,982,038,395
Structure: Partnership
AUM: NGN 2,982,341,046
AUM Growth Rate: -0.60%
Investment Utilization Ratio: 99.99%
Investment Value Growth Rate: 0.00%
ARM PRIVATE EQUITY FUND ranks fourth with an AUM of NGN 2,982,341,046. The fund is notable for its exceptional Investment Utilization Ratio of 99.99%, indicating that nearly all its assets are actively invested. Although the fund saw no growth in its investment value, its stable management and high efficiency in deploying assets make it a strong performer. However, the slight decrease in AUM (-0.60%) suggests challenges in maintaining or growing its capital base.
5. NIG. HEALTHCARE DEV. FUND – Managed by CAPITAL TRUST INVESTMENT LTD
Target Size: NGN 10,000,000,000
Committed Capital: NGN 7,500,000,000
Drawdown: NGN 1,005,000,000
Investment Value: NGN 591,000,000
Structure: Trust
AUM: NGN 2,848,081,543
AUM Growth Rate: +337.88%
Investment Utilization Ratio: 20.75%
Investment Value Growth Rate: -1.17%
The NIG. HEALTHCARE DEV. FUND ranks fifth on the list with an AUM of NGN 2,848,081,543. Despite its impressive AUM growth rate of +337.88%, the fund’s Investment Utilization Ratio is relatively low at 20.75%, indicating that a significant portion of its assets remains uninvested. The slight decrease in investment value by -1.17% suggests a conservative approach, possibly aimed at maintaining liquidity or awaiting better investment opportunities.
These funds have shown remarkable performance in terms of growth and efficiency in the challenging economic environment of 2020.
