By Aduragbemi Omiyale
The private debt fund sponsored and managed by FCMB Asset Management Limited with support from TLG Capital Investments Limited (TLG Capital) UK has been approved by the Securities and Exchange Commission (SEC).
The facility, which was established in May 2024, is the first Naira-denominated private debt fund in Nigeria and the size is N100 billion.
However, FCMB intends to raise about N10 billion under Series 1, with proceeds to be used for investments in commercially viable and impact-oriented activities in sectors of the Nigerian economy aligned with the United Nations (UN) Sustainable Development Goals (SDGs).
The fund is targeted at qualified institutional investors (QIIs) and high-net-worth individuals (HNIs), providing them with an opportunity to earn a competitive risk-adjusted return on investment while supporting the earth’s sustainability.
The fund manager explained that it aims to build a diversified portfolio of debt, with a strong emphasis on economic impact and downside risk protection.
This is because the FCMB-TLG private debt fund is poised to play a crucial role in providing suitable debt to organisations in selected sectors of the Nigerian economy in order to enhance their operations and support their growth aspirations.
“This innovative fund is a significant milestone in the Nigerian financial landscape.
“It opens a new avenue for professional investors to participate in the growth of key sectors of the economy while providing essential capital to organisations driving sustainable economic growth and development in Nigeria.
“The launch of the FCMB-TLG Private Debt Fund means Nigeria now joins the rest of the international investment community in offering Private Credit as an investment option under Alternative Assets,” the chief executive of FCMB Asset Management Limited, Mr James Ilori, said.
“We are delighted to partner with FCMB Asset Management in pioneering this fund.
“It aligns with our commitment to investing in untapped markets and will significantly contribute to Nigeria’s broader economic development,” a representative of TLG Capital in Nigeria, Mr Aletor Adoghe, stated.