Duet Private Equity and Asset Management Corporation of Nigeria (AMCON) has signed an exclusive agreement to establish an investment fund focused on Nigeria’s fast-moving consumer goods (FMCG) sector.
Duet, a UK-headquartered €5.1 billion alternative asset manager, said the fund will focus on turnaround and distressed situations, where companies require additional capital and debt restructuring.
The new fund will launch with an initial target size of $400 million (€363 million) and its portfolio will consist exclusively of food and beverage companies with local brands. AMCON will contribute six portfolio companies currently under its control and the fund will invest an additional $200 million (€182 million) into these six companies.
Commenting on the launch, AMCON CEO Ahmed Kuru said: ‘We are very excited about partnering with Duet in this private-public partnership. AMCON was established by the Government of Nigeria in 2010 to support the country’s private sector, and our initiative will provide working capital for many companies which have suffered in the past from a scarcity of finance.’
Duet Africa Private Equity managing director Maty Ndiaye added: ‘In the present difficult economic climate, our venture will be very important for Nigeria.
‘We are delighted to be able to extend our investment capabilities across the region following our recent investments, including one of Ethiopia’s biggest breweries, as well as food and drink producers in Ghana and Ivory Coast.’