AVCA and PenOp Launch Inaugural Report on Pension Funds and Private Equity Investments in Nigeria

Tuesday, December 14, 2021 / 6:14 p.m. / by AVCA / Header image credit: AVCA

The publication of this landmark report aims to bridge the gap between these two complementary industries by investigating and assessing the role of Nigerian pension funds in empowering local investors in the private equity industry in Nigeria.

The African Private Equity and Venture Capital Association (AVCA) and the Association of Pension Fund Operators of Nigeria (PenOp) are pleased to release the first ever report on the engagement of Nigerian pension funds in the capital investment. The report incorporates responses from leading pension fund managers in Nigeria, exploring their interest in and perception of private equity as an asset class.

The Nigerian pension fund industry has grown by an impressive 18% over the past five years, culminating in an asset base of NOT12.3 trillion ($29.9 billion) as of December 31, 2020. Although there has been a concerted effort by both industry groups to increase the level of pension allocation to private equity, the allocation of Nigerian pension funds to the asset class has traditionally been small relative to their authorized limits. The publication of this landmark report aims to bridge the gap between these two complementary industries by investigating and assessing the role of Nigerian pension funds in empowering local investors in the private equity industry in Nigeria.

The report on pension funds and private equity in Nigeria reveals that Nigerian pension funds are showing a strong appetite for private equity investments, both locally and across the continent. 75% of pension fund managers surveyed plan to accelerate or maintain their current pace of capital commitments to African equity over the next five years, citing a desire for diversification and performance of the portfolio as the most important factors motivating their investment plans.


The report also lists some of the obstacles faced by pension funds investing in this asset class. Respondents highlighted a weak perceived exit climate and a limited number of established African GPs as significant challenges for pension funds investing in African private equity. However, 49% of survey participants do not view any of the current pension investment regulations as prohibitive, suggesting that respondents view the existing regulatory environment as conducive to investing in asset classes. alternative assets.

Speaking on the publication, AVCA CEO, Abi Mustapha-Maduakor said, “The growing interest in the private equity industry in Africa from domestic and international investors highlights the need to analyze the perceptions and concerns of institutional investors in order to promote an open dialogue on the continent. unique business environment. This joint publication exemplifies AVCA’s commitment to championing private investment in Africa: bridging the knowledge gap between industry stakeholders by providing timely and informative research on the opportunities that private equity has to be offered to Nigerian pension funds”.

Oguche Agudah, CEO of PenOp, said: “Local pension funds have expressed a desire to increase their allocation to private equity and more impactful investments. Partnering with AVCA helps us work with industry stakeholders to identify and resolve these bottlenecks for our mutual benefit and the benefit of the local economy.”

Download the full PDF report here

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