Top 5 private equity funds in Nigeria based on AUM, AUM Growth, and investment efficiency 

The private equity sector in Nigeria is vital to the nation’s economic growth, providing essential capital to businesses across various sectors.

In 2023, the performance of these funds has been closely watched by investors, analysts, and industry stakeholders.

This ranking, based on data from the Securities and Exchange Commission (SEC) of Nigeria, highlights the top 5 private equity funds in the country, ranked in ascending order based on Assets Under Management (AUM).

AUM is a key metric that reflects the total market value of the assets of a fund manager. It is an indicator of the fund’s size, investor confidence, and the ability to attract and manage capital.

In addition to AUM, this article also considers AUM Growth Rate, Investment Efficiency (measured by the Investment Utilization Ratio), and Investment Value Growth Rate to provide a comprehensive analysis of each fund’s performance.

In this article, we delve into the top performers of 2023, offering a detailed look at the financial health, strategic approach, and market impact of each fund. Whether you are an investor, analyst, or industry stakeholder, this ranking serves as a guide to understanding which funds are leading the charge in Nigeria’s competitive private equity landscape.

5. NIG. HEALTHCARE DEV. FUND – Managed by CAPITAL TRUST INVESTMENT LTD

• Target Size: NGN 10,000,000,000

• Committed Capital: N7,500,000,000

• Investment Value: N591,000,000

• AUM Growth Rate: +337.88%

• Investment Utilization Ratio: 20.75%

• Investment Value Growth Rate: -1.17%

The NIG. HEALTHCARE DEV. FUND, with an AUM of N2,848,081,543, ranks fifth on our list. Despite its extraordinary AUM growth rate of +337.88%, the fund’s Investment Utilization Ratio is relatively low at 20.75%, indicating that a large portion of its assets remain uninvested.

The slight decrease in the investment value of -1.17% suggests a conservative approach, possibly aimed at maintaining liquidity or awaiting better investment opportunities.

4. ARM PRIVATE EQUITY FUND – Managed by ARM CAPITAL PARTNERS

• Target Size: USD 150,000,000

• Committed Capital: N7,502,699,728

• Investment Value: N2,982,038,395

• Investment Utilization Ratio: 99.99%

• Investment Value Growth Rate: 0.00%

ARM PRIVATE EQUITY FUND ranks fourth with an AUM of N2,982,341,046. The fund is notable for its exceptional Investment Utilization Ratio of 99.99%, indicating that nearly all its assets are actively invested.

Although the fund saw no growth in its investment value, its stable management and high efficiency in deploying assets make it a strong performer.

However, the slight decrease in AUM (-0.60%) suggests challenges in maintaining or growing its capital base.

3. VEROD CGO II B L.P. FUND – Managed by VEROD ADVISORY SERVICES LIMITED

• Target Size: USD 6,155,000

• Committed Capital: N2,378,413,900

• Investment Value: N2,235,972,182

• Investment Utilization Ratio: 47.46%

• Investment Value Growth Rate: -4.68%

VEROD CGO II B L.P. FUND, with an AUM of N4,711,504,835, comes in third. The fund achieved a significant AUM growth rate of +68.04%, although its Investment Utilization Ratio of 47.46% indicates a more conservative approach to deploying capital.

The fund’s slight decrease in investment value by -4.68% suggests there is room for improvement in capital allocation, but its growth in AUM indicates strong investor confidence.

2. PIONEER LLP FUND – Managed by CAN FUND MANAGER LIMITED

• Target Size: USD 100,000,000

• Committed Capital: N35,163,330,000

• Investment Value: N5,115,907,048

• Investment Utilization Ratio: 98.52%

• Investment Value Growth Rate: +38.16%

PIONEER LLP FUND ranks second with an AUM of N5,192,616,018. The fund’s Investment Utilization Ratio is notably high at 98.52%, reflecting effective asset deployment.

The investment value grew by +38.16%, indicating strong performance in capital management, even though the overall AUM slightly decreased (-2.64%).

This suggests that while the fund is highly efficient, it faces challenges in attracting new capital or retaining existing investments.

1. CAN PRIVATE EQUITY FUND LP – Managed by CAN FUND MANAGER LIMITED

• Target Size: USD 150,000,000

• Committed Capital: N48,018,700,000

• Drawdown: N24,284,203,898

• Investment Value: N49,543,337,522

• AUM Growth Rate: +138.08%

• Investment Utilization Ratio: 94.68%

• Investment Value Growth Rate: +134.47%

At the top of our ranking is CAN PRIVATE EQUITY FUND LP, with an AUM of N52,324,443,071. This fund leads the market with its substantial AUM and a robust Investment Utilization Ratio of 94.68%.

The fund’s investment value saw a remarkable growth of +134.47%, demonstrating its ability to effectively deploy capital and generate significant returns.

The AUM Growth Rate of +138.08% further solidifies its position as the leading private equity fund in Nigeria, showcasing strong investor confidence and efficient management.