Nigerian pension managers back CardinalStone’s $76 million fund
Three pension managers from Nigeria joined the first close of CardinalStone Capital Advisers’ second growth fund at $76 million. The West Africa-focused CCA Growth Fund II plans to raise around $120 million to invest in small and medium-sized enterprises in Nigeria, Ghana, Côte d’Ivoire and Senegal.
The deal was reported by MyJoyOnline. Investors in the first close included the International Finance Corporation (IFC), British International Investment, SCM Capital, Dutch Good Growth Fund, CardinalStone Partners, as well as Stanbic IBTC Pension Managers, Access ARM Pensions and FCMB Pensions.
Investments in West African business
The fund plans to invest in agribusiness, manufacturing, consumer goods and services, healthcare, education and financial services. Farid Fezoua, IFC director for equity, funds and venture capital investments, said that small and medium-sized enterprises are essential for job creation in West Africa, but their access to long-term capital remains limited.
More current news is available on the UA.News Telegram channel Telegram.
According to Fezoua, the investment is expected to help promising companies obtain capital and support to scale up, create jobs and expand economic opportunities in the region.
The role of pension capital
The participation of Nigerian pension managers, the publication notes, reflects the gradual growth of pension capital’s role in financing businesses and long-term economic growth alongside traditional fixed-income investments.
The article also notes that pension funds in Ghana are allowed to invest in alternative assets, including private equity, under conditions set by the National Pensions Regulatory Authority. Industry representatives emphasize the need for a more stable market, co-investment opportunities and specialized expertise to assess and manage such investments.
