Syntaxis Capital Africa, has launched a N12-billion private equity fund in partnership with Afrinvest Asset Management Limited, to meet the funding needs of Small and Medium Scale Enterprises (SMEs) in sub-Saharan Africa.
The fund launched in Abuja, at the weekend, is expected to cover a variety of sectors including, manufacturing, agri-processing, healthcare, education, and financial services.
While SMEs play a vital role in the development of economies, access to funding remains a critical challenge on the performance of the sector.
Speaking at the event, the Group Managing Director, Afrinvest, Ike Chioke, said the focus of the fund is deepen and widen financial inclusion for SMEs by providing patient capital. The fund provides a viable option for SMEs who are looking for growth.
Partner and Managing Director, Syntaxis Capital, Adesuwa Okunbo, while speaking on the benefits of the fund, said: “We see the fund as a vehicle for rapid economic growth and development. By providing access to capital to SMEs, we are giving businesses the power to scale their activities, which will in turn increase productivity, create new jobs, and generate taxes for the government.
“In addition, the fund has a unique focus on supporting women-owned or managed businesses in order to improve the ratio of women in the workforce and enhance the standard of living across board.”
Speaking on the benefits of the fund, Managing Director, Afrinvest Asset Management, Ola Belgore, said: “the fund has been constructed as a portfolio of cash-generative African private equity investments diversified by sector and geography. Qualified investors can therefore expect high level of contractual income combined with significant minority equity stakes, superior risk adjusted returns, strong equity upside, and capital preservation.”
Syntaxis Capital Africa, the sponsor of the fund, has a 30-year track record of successfully managing private equity funds, having raised up to $300 million from global institutional investors, and deploying two private equity funds in other emerging markets. Afrinvest Asset Management Limited, the fund manager, is licensed by the Securities and Exchange Commission (SEC), Nigeria, as a portfolio manager with several listed funds including the Nigeria International Debt Fund; as well as the Afrinvest Equity Fund.