Syntaxis Growth Fund Afrinvest

Syntaxis Nigeria Growth Fund

The Syntaxis Nigeria Growth Fund is a ₦12 billion fund targeted at making private growth equity investments in fast growing and small to lower mid-market companies in Sub-Saharan Africa. The Fund is sponsored by Syntaxis Capital Africa and managed by Afrinvest Asset Management Limited. This fund will target investments across a wide range of sectors in Nigeria including manufacturing, agriprocessing, healthcare, education and financial services.
 
Case for Investment 
 

    • Compelling long-term macroeconomic fundamentals, resulting from high rates of urbanization and favourable labour demographics. It is estimated that Nigerian households would spend an additional ₦10.8tn a year by 2025.

 

    • Robust demand for growth capital in the small to lower mid-market segment. There is a huge funding gap across SMEs in Nigeria looking for patient capital in order to grow their business over the medium to long term. Bank debt provided to the private sector by banks as a percentage of GDP is 14.0% in Nigeria compared to 128.0% across G8 countries. There is a concentration of private equity capital in larger investment funds with many viable portfolio companies, with investment requirements of between N1.8 billion to N5.4 billion in Nigeria, deemed too small for the majority of PE firms on the continent.

 

    • Strong development impact. By providing capital and enabling these small companies to grow from a local presence in Nigeria to a regional, or even continental level and scale their activities, the Fund will help to create new jobs, generate taxes for the government and fuel economic growth in Nigeria.

 

  • Deepens the financial ecosystem. By providing a viable financing alternative to businesses in the small to lower mid-cap segment that currently lack access to growth capital.

 
Fund Objectives
 
The Fund seeks to:

    • Unlock patient and flexible growth capital for SMEs. Provide growth capital to established and proven businesses in Nigeria with a minimum of 3 years of operations in the small to lower mid-cap segment.

 

    • Provide operational hands-on support to portfolio companies. Assist in institutionalisation and capacity building of investee companies through active hands-on involvement to support internal financial control and external investor reporting (management, financial, and with regards to Environmental Social and Corporate Governance improvements) as well as supply chain enhancements.

 

    • Enhance gender equality and women’s economic empowerment. The Fund will invest with a gender lens strategy to ensure that the growth capital the Fund provides to its investee companies improves the ratio of women in the workforce and across the value chain as well as improving the lives of women.

 

  • Generate superior risk adjusted returns. Investments will be structured in a manner that captures significant equity upside with a focus on capital preservation for investors. Investments will have a high level of contractual income, combined with significant minority equity stakes and the Fund will be constructed as a portfolio of cash-generative African private equity investments, diversified by sector and geography.

 
For more details, call: 0818 815 4222 or send an email to [email protected]