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NiFund, an investment management company targeting investment opportunities in high growth sectors in Nigeria, today launched the Nigerian Infrastructure Fund SP, with a target of raising $2 billion. In addition to the infrastructure fund, NiFund plans to also launch new funds targeting Nigeria’s high growth sectors.

The infrastructure fund was launched on the occasion of the Nigerian British Chamber of Commerce (NBCC) mission to the United Kingdom. The fund will have a seven-year investment horizon with up to two additional years for asset divestment. NiFund will solicit commitments from both qualified private investors and development finance institutions. The fund plans to employ a core satellite approach in order to ensure that capital is optimized over the investment period.

Aaron Smith, Managing Director of Pecora Capital, manager of the fund, said, “Investment in the infrastructure sector is vital for the socioeconomic development of Nigeria and we will aim to attract foreign investors to fund critical national infrastructure projects with an overarching aim to deliver a strong return on investments. Through infrastructure development in Nigeria, NiFund will act as a catalyst for future growth and prosperity in the country.”

He said NiFund is designed to provide investors with an opportunity to make substantial returns in one of Africa’s fastest growing economies, while elaborating that long term private equity investors have the opportunity to capture super-normal risk adjusted returns with the fund.

Nigeria’s rapid growth and urbanization has resulted in enormous demand for sound and sustainable infrastructure development throughout the country. To actively participate in this growth and meet the increasing demand for suitable infrastructure, NiFund plans to invest in equity stakes in private infrastructure projects across various sectors including power, transport and communications.

In addition, the Fund also aims to tap into projects that strengthen institutions, human capacity, critical processes, tools and foundational services such as logistics systems for delivering agricultural products to markets. It promises to provide investors unparalleled potential returns while substantially reducing risk through robust deal flow and proprietary project selection methodology, portfolio diversification and solid corporate governance.

Pecora Capital said it has collaborated with Heart African Investments (HAIL) to source transactions and provide portfolio management services on its behalf in Nigeria. Also, NiFund has appointed Trident Fund Services (TFS) to deliver services as an independent, regulated fund administrator to the infrastructure fund. TFS has more than $30 billion in assets under management and $5 billion specifically in African Infrastructure Funds. The Fund has appointed KPMG as the external auditor and Stanbic IBTC, a subsidiary of Standard Bank, will act as the Fund’s custodian.

“We are witnessing a strong commitment from the Nigerian government to develop the public infrastructure and hence all efforts are being made to attract FDI into this sector. Nigeria offers a great proposition to foreign investors with its vast natural resources, arable land, and a young, entrepreneurial population,” concluded Smith.