Investment AB Kinnevik (publ) ("Kinnevik") and Asset & Resource Management Company Ltd ("ARM"), a leading Nigerian asset management and financial services group, have joined forces to create one of West Africa's leading private equity funds. The fund combines Kinnevik's international experience with the investment management expertise, local resources and robust network of one of the largest asset management firms in West Africa.
The fund's investment team is based in Lagos, Nigeria, and consists of professionals that have gained significant experience in Africa and other emerging markets with leading companies such as J.P. Morgan and GE Capital. Kinnevik will own 30% of ARM Capital Partners (the fund management company), and Kinnevik and ARM are demonstrating their strong commitment to the investment team by committing USD 15 million each to the first fund that will be launched this fall.
"Sub-Saharan Africa provides attractive growth and investment opportunities. By setting up a West African private equity firm in Nigeria together with a leading local partner and staffed with highly qualified international and local management, Kinnevik can more broadly capture these opportunities", says Henrik Persson, Head of New Ventures.
Deji Alli, Managing Director and CEO of ARM, adds "ARM has a successful track-record of investments in private companies. We are delighted that we, through our partnership with Kinnevik, are in a position to formalise a solid platform to direct needed capital to and help create value in some of Nigeria's fastest growing and well-managed companies."
The investment comes in addition to the Kinnevik group's existing successful African investments within mobile telephony through Millicom, microfinance through Bayport and broadcasting through Modern Times Group.
In addition to the strong commitment of its sponsors, the fund is also raising capital from third party investors and is currently discussing limited partner investments with a group of local and international institutions with interest in the region.
Henrik Persson, Head of New Ventures
+46 (0)8 562 000 00
Torun Litzén, Director Investor Relations
+46 (0)8 562 000 83
+46 (0)70 762 00 83
Investment AB Kinnevik's objective is to increase shareholder value, primarily through net asset value growth. Kinnevik manages a portfolio of investments focused around three comprehensive business areas; Major Unlisted Holdings which includes the cartonboard and paper company Korsnäs including shares in Bergvik Skog, Major Listed Holdings which includes Millicom International Cellular, Tele2, Modern Times Group MTG, Metro International and Transcom WorldWide, and New Ventures which is active in finding new investments in small and mid sized companies which has a significant growth potential. Kinnevik plays an active role on the Boards of its holdings.
The Kinnevik's class A and class B shares are listed on the NASDAQ OMX Stockholm's list for large cap companies, within the financial and real estate sector. The ticker codes are KINV A and KINV B
ABOUT ARMAsset & Resource Management Company Ltd ("ARM") was established in 1994, and has evolved into one of the most respected financial services brands in Nigeria. ARM is a diversified and integrated, non-bank financial services institution with over 15 years of investment management expertise. The business comprises non-pension asset management, pension fund administration, trust services, real estate management and development, infrastructure finance and development, investment banking and financial advisory services.