Duet Private Equity and AMCON (Asset Management Corporation of Nigeria) have signed an agreement to establish an investment fund focused on Nigeria’s fast-moving consumer goods (FMCG) sector.
Henry Gabay, Duet Group CEO and Duet Private Equity CIO, said: “We are delighted to partner with AMCON in this exciting project. We believe it is absolutely the right time to invest in Nigeria and in the FMCG sector.”
“We have a strong track record partnering with promising, growth business that can tap into growing demand for consumer goods in Sub Saharan Africa. We believe that import substitution and local product development present huge opportunities for investors in the region,” he said.
The Fund will launch with an initial target size of $400m and AMCON will contribute six portfolio companies currently under its control.
The Fund will invest an additional $200m into these six companies.
The Fund will focus on turnaround and distressed situations, where companies require additional capital and debt restructuring.
The portfolio will consist exclusively of food and beverage companies with local brands.
AMCON was established by the Government of Nigeria in 2010 to support the country’s private sector.
Ahmed Kuru, AMCON CEO, said: “Our initiative will provide working capital for many companies which have suffered in the past from a scarcity of finance.”
“We are very excited about partnering with Duet in this private-public partnership. It reflects the administration’s drive to attract fresh, direct foreign capital into businesses,” he added.
Duet Private Equity will shortly open an office in Nigeria to help identify and assess investment opportunities, manage portfolio companies and work with local partners.
Maty Ndiaye, Duet Africa Private Equity MD, said: “In the present difficult economic climate, our venture will be very important for Nigeria. At Duet, we believe in the longer-term economic potential of the region. We are delighted to be able to extend our investment capabilities across the region following our recent investments, including one of Ethiopia’s biggest breweries, as well as food and drink producers in Ghana and Ivory Coast”. Source: Asoko Insight