The Case For A Nigerian Private Equity Initiative
Accelerating Vision 20:20:20 - The Case for a “Nigerian Private Equity Initiative” October 2010


Henshaw Capital Partners (HCP) initiated the “Nigerian Private Equity Initiative” in October 2010.

The first phase of the Nigerian Private Equity Initiative - to raise awareness of private equity and venture capital finance for growing businesses and creating jobs - is supported by the Federal Ministry of Finance.

We invite leading government ministries, departments and agencies (MDA’s), relevant financial institutions and private sector stakeholders to participate in this initiative to create jobs, wealth and prosperity in Nigeria.

In this package, we illustrate the private equity imperative – why Nigeria should harness the opportunity of private equity to create jobs, wealth and prosperity and recommend how such an initiative can be implemented to maximize its impact and success.

In Section 1, we introduce Henshaw Capital Partners, a pioneering private equity firm dedicated to harnessing the potential of private equity in Africa. Henshaw was founded in 2007 by Barbara James, former CEO of the African Venture Capital Association. We also provide over 20 examples, in other countries and states, of Private Equity Fund of Funds that were set up to foster economic development and employment growth.

In Section 2, we illustrate the economic impact of private equity in Europe, USA and UK including the compelling facts that private equity backed companies support 1 in 5 jobs in the UK, revenues contribute over 20% to US GDP and creates jobs 8 times faster than average in the US and Europe. We believe with a robust private equity initiative and industry in Nigeria, Nigerian private equity can support 1 in 5 required jobs and contribute exponentially to economic and social development.

In Sections 3, we provide an overview of the African private equity industry, with details of the South African industry - the largest and most developed in Africa and some insights from the Nigerian SMEEIS schemes.

In Sections 4, we recommend how a “Nigerian Private Equity Initiative” can be implemented to maximize its impact through:
  • Creating awareness among all stakeholders of the opportunity of private equity in Nigeria and their role in harnessing it;
  • Investing in private equity and launching new sector and region specific funds;
  • Building robust private equity institutions for proactive policy engagement, monitoring, feedback and timely interventions as necessary.
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