NiFund targets investment opportunities in Nigeria with $2bn infrastructure fund

Nigeria’s rapid growth and urbanization has resulted in enormous demand for sound and sustainable infrastructure development throughout the country. This is why NiFund, an investment management company targeting investment opportunities in high growth sectors in Nigeria, today launched the Nigerian Infrastructure Fund SP with a target of raising $2 billion. The Fund, which is the company’s first sector investment fund, was launched at the Nigerian British Chamber of Commerce (NBCC) Mission to the United Kingdom.

The Fund, created specifically to provide investment in the infrastructure sector in Nigeria, including power, transport and communications, is managed by the global investment management firm, Pecora Capital Ltd. NiFund will invest by equity in private infrastructure projects across various sectors in the country.

“Investment in the infrastructure sector is vital for the socioeconomic development of Nigeria and we will aim to attract foreign investors to fund critical national infrastructure projects with an overarching aim to deliver a strong return on investments,” said Aaron Smith Managing Director of Pecora Capital. “Through infrastructure development in Nigeria, NiFund will act as a catalyst for future growth and prosperity in the country.”

The Fund will aim to also tap into projects that strengthen institutions, human capacity, critical processes, tools and foundational services such as logistics systems for delivering agricultural products to markets, providing investors unparalleled potential returns while substantially reducing risk through robust deal flow and proprietary project selection methodology, portfolio diversification and solid corporate governance.

“We are witnessing a strong commitment from the Nigerian government to develop the public infrastructure and hence all efforts are being made to attract FDI into this sector. Nigeria offers a great proposition to foreign investors with its vast natural resources, arable land, and a young, entrepreneurial population,” said Smith.

Smith will manage the Fund together with Jeffrey Harpur, Head of Risk Management, NiFund, while his company, Pecora Capital Ltd., which also serves as the Fund’s Investment Manager, will provide the global alternative investment expertise. The company has therefore collaborated with Heart African Investments (HAIL) to source transactions and provide portfolio management services on its behalf in Nigeria.

As the Fund’s asset valuation policy dictates that net asset values be calculated quarterly by an independent, regulated fund administrator, NiFund has appointed Trident Fund Services. KPMG has been chosen as the external auditor and Stanbic IBTC, a subsidiary of Standard Bank, will act as the Fund’s custodian.