NBCC Forum: Stakeholders Review Private Equity and Economic Gains For Nigeria


Friday, March 19, 2021 / 5:24 PM / Ayomide Oguntoye for WebTV / Header Image Credit: WebTV

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The Nigerian British Chamber of Commerce (NBCC) last week hosted a webinar that focused on the theme "Managing Private Equity/Entrepreneur Relationship".

Mr. Kayode Falowo, President of the NBCC in his welcome address noted that in a global private equity market review 2020, the total Asset Under Management (AUM) as of 2019 was estimated to be US$3.9trn with North America, Europe, and Asia accounting for 49%, 18.3% and 28.4% of the market respectively;  while the rest of the world represented 4.2% of the market.

The review according to Mr. Falowo showed that there was a great disparity in the private equity market between Africa and other continents.  He stated that this may be due to the general economic challenges in Africa like political/social-economic instability, currency fluctuations, insecurity, and lack of adequate infrastructure.

Falowo also mentioned that the limited awareness and understanding about funding on the part of entrepreneurs had contributed to the sluggish development of the private equity market.

He further mentioned that the NBCC was concerned about the development of the private equity market, as it would generate revenue for the government and decent earnings for investors through the creation of real value that was beyond equity.

In a bid to achieve this, he observed that there was more to be done to prepare entrepreneurs in terms of understanding the financing needs and different stages of a business cycle through meeting the investor-requirement and managing investor-relations. 

Dr. Okey Enelamah, Chairman African Capital Alliance delivering his keynote address said that the principle of 'partnership by collaboration' can be considered necessary, in the process of managing private equity and entrepreneurial relationship as it has been proven to have created wealth for both the investors and entrepreneur over a long period.

Enelamah a former Minister of Industry, Trade, and Investment observed that Africa remains an attractive investment destination, for private equity investors seeking to back high-growth businesses with long-term impact and economic gains.

Describing how investors could leverage on the private equity market, Enelamah said through research, investors could negotiate at the point of entry and work closely with the founders and management of a business to create value and generate early liquidity.

Stating the benefits to entrepreneurs, he said that, the partnerships would provide entrepreneurs with access to patient capital, value addition and serve as a catalyst for growth.

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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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