₦airaland Forum

deenee: @ moremi,I still repeat without trying to sound like a "broken record", that the PE terrain is not as bad as you connote. I also think that the comparison you are drawing with the "West" is flawed. PE is still very new in Nigeria whilst in the "West" PE transactions have been in existence for close to a century hence the "level playing ground" that would make your analogy credible is missing.

Additionally, there have been attempts to structure PE transactions in the past some of which didn't end well. ("Linkserve" deal comes to mind). However, a handful of firms are involved in some ground breaking transactions and have put in place some form of structure around their funds. For example, ARM Capital partners has the Infrastructure fund out of which they have drawn funds to invest in Lekki Concession Coy responsible for managing about 50 klm of road along the Lekki/Ajah axis for LASG. There is also the retail and hospitality fund out of which they have pooled resources for the construction of Four Points Sheraton, V.I and a host of other hospitality outlets under construction. There is the real estate fund managed by ARM properties and a TMT fund with investments in a handful of outdoor advertising firms. ACA also has something similar to this. I am not trying to hold sway for PE firms in Nigeria, because there is still plenty room for improvement, but I think that they deserve some commendation especially when we consider the larger marco- economic environment and policy inconsistency in Nigeria- a condition that is not prevalent in the "West". In terms of transaction value, I am not aware of any coy (except the Dangote group and a major telco) that has done any deal in excess of $1 billion. A lot of these deals are done in tranches hence you can have a PE firm investing first and foremost in a pioneer transaction and later increasing their holdings by way of more investments(e.g construction of malls, REITS etc) .

You speak of 30+ returns being a herculean task. Actis and ECP made 3 times ROI when they divested from Starcomms. Another PE firm wholly owned by a Nigerian made 4 times ROI when they divested from a major telco via a private placement. Same also from ABC transport. There are also some PIPE(private investment in a public entity) transactions that also yielded superlative returns especially during the IPO craze of 2006-2008. I can go on and on if not for "confidentiality" reasons.

Besides, I work with a bulge bracket PE firm here in the USA with HO in the Cayman islands and with SIGNIFICANT investments in tech start ups around Silicon valley. We have structured some deals in real estate, healthcare, entertainment esp. box office movies etc I can tell you that apart from healthcare,entertainment (which has a shorter gestation period by the way) and tech start ups, no other PE investment will guarantee you a 30+ ROI. Is it real estate where house prices keep falling everyday, or infrastructure that is supported via govt. concessions and tarrifs. Tech start ups will also have a hard time now especially with the recent bungling of the highly anticipated facebook IPO.
On a personal note, success has a relative definition. For some, it simply means having a regular 9-5 job that will offer them the comfort of a home, car, funds to send their kids to college, a modest retirement savings account (RSA) whilst they live their life "one step at a time". For others, success is defined in "Quantum Leap" terms where life is lived on the edge. I think, that I know what my definition of success is and I am certain that it is not based on another person's yardstick. BEST OF LUCK to you however you wish to define your "SUCCESS"

P.S The thread is not about PE investments in West vs. PE in Nigeria. It is just to educate and create awareness. Please let's take note of this.

pimpo: Hello,

Please, how many miles has it got on it and wots ur asking? details to chimon@email.com.
Thanks

olodeokuta: Guys, pls i need a top class Autocare (carwash)in lagos. The Autocare must be able to handle car with leather seats. The leather seats and the general interior is the main priority. The company must be able to work them till they shine...lol.

please if you know any Carwash that can do the job as explained above, kindly get in touch with me. PLEASE TREAT AS URGENT

Thank you

lacicrips: Please kindly post pictures of these items.

globechamp: Wow.

Can you believe this stunning design from Toyota? Seems they are waking up to taking the lead from stiff competition.


https://www.youtube.com/watch?v=oW6iS1MnPkc