Actis LLP, a private equity investor in emerging markets, bought a majority stake in fund administrator Sigma Pensions Ltd. of Nigeria to capitalize on an increase in retirement planning in Africa’s largest economy.
The firm, which has more than $7.6 billion in assets under management, paid $62 million for the holding in partnership with Sigma Chief Executive Officer Umaru Modibbo and management, London-based Actis said in a statement. Sigma, based in Abuja, has more than 650,000 customers among the 6 million pension holders in the nation of more than 170 million people, according to Actis.
Actis, with more than $570 million invested in African financial services, said Sigma sits in an under-penetrated, well-regulated market that is set for rapid growth. The investor said it plans to promote the brand and expand the business, which currently operates from 11 offices and 32 service centers in Nigeria. Sigma will benefit from the funder’s management and distribution expertise, Modibbo said in the statement.
The buyout firm has about $3 billion invested in the continent’s businesses including $300 million in Nigerian companies such as mattress maker Mouka Ltd., Diamond Bank Plc, several malls and Emerging Markets Payments Holdings Ltd., a pan-African payments business. Source: Bloomberg