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Banking | Finance

SEC Approves FCMB-TLG’s Nigeria’s First Naira-Denominated Private Debt Fund

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<em>From left: Debt Fund Portfolio Manager, FCMB Asset Management Limited, Mr. Ndukaku Offiah; Representative of TLG Capital in Nigeria, Mr. Aletor Adoghe; the CEO, FCMB Asset Management Limited, Mr. James Ilori and Partner, Aluko & Oyebode Law Firm, Dr. Ajibola Asolo, during the signing, during the signing of FCMB-TLG Private Debt Fund’s transaction documents in Lagos recently</em>

The Securities and Exchange Commission (SEC) has approved the FCMB-TLG Private Debt Fund, Nigeria’s first Naira-denominated Private Debt Fund.

Established in May 2024 and sponsored and managed by FCMB Asset Management Limited (FCMBAM) as the Fund Manager, with technical support from TLG Capital Investments Limited (TLG Capital), United Kingdom, the Fund seeks to raise N10 billion under Series 1 of its One Hundred Billion Naira (N100 billion) Programme size.

The FCMB-TLG Private Debt Fund targets Qualified Institutional Investors (QIIs) and high-net-worth individuals (HNIs).

The Fund will focus on investing in commercially viable and impact-oriented activities in sectors of the Nigerian economy aligned with the United Nations (UN) Sustainable Development Goals (SDGs) while providing investors with an opportunity to earn a competitive risk-adjusted return on investment.

The Fund aims to build a diversified portfolio of debt, with a strong emphasis on economic impact and downside risk protection.

“This innovative Fund is a significant milestone in the Nigerian financial landscape,” said James Ilori, CEO of FCMB Asset Management Limited, at the signing ceremony held on Monday, June 3, 2024. “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”.

Aletor Adoghe, representing TLG Capital in Nigeria, added, “We are delighted to partner with FCMB Asset Management in pioneering this Fund. The Fund aligns with our commitment to investing in untapped markets and will significantly contribute to Nigeria’s broader economic development.”

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.

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Funsho Arogundade

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