James Illori, the Chief Executive Officer of FCMB Asset Management, has expressed confidence that the FCMB-TLG Private Debt Fund, Nigeria’s first naira-denominated private debt fund, will significantly impact the country’s financial sector and drive economic growth.
In a recent interview with Bloomberg, Illori highlighted that the fund is designed to improve access to capital for mid-sized companies in Nigeria while offering investors a competitive risk-adjusted return on investment. He emphasized the potential of private debt, also known as private credit internationally, to diversify investment portfolios and contribute to economic development.
“We observed that while small companies can borrow from microfinance institutions and large corporations can secure loans from banks, mid-sized firms, generating annual revenues between N15 billion and N1.5 trillion, often struggle to find suitable capital. The FCMB-TLG Private Debt Fund aims to bridge this gap, providing essential financing to these critical players in Nigeria’s economy,” Illori explained.
The FCMB-TLG Private Debt Fund, which received approval from the Securities and Exchange Commission (SEC) in May 2024, aims to raise N10 billion in its first series as part of a N100 billion programme. The fund targets Qualified Institutional Investors (QIIs) such as Pension Fund Administrators (PFAs), Insurance companies, Development Finance Institutions (DFIs), Family Offices, and High Networth Individuals (HNIs).
The capital raised will be channeled into corporate debt for companies engaged in commercially viable but impact-driven activities in key sectors of the Nigerian economy, including Agriculture, Healthcare, Education, Clean Energy, IT/Technology, and Transport/Logistics. These sectors align with the United Nations (UN) Sustainable Development Goals (SDGs).
The introduction of the FCMB-TLG Private Debt Fund marks a significant development in Nigeria’s financial landscape. It provides an alternative source of capital for mid-sized companies while allowing institutional investors and high-net-worth individuals to diversify their portfolios and achieve a competitive return on investment. By aligning with the UN SDGs, the fund also reinforces FCMB Asset Management’s commitment to promoting sustainable economic growth and development in Nigeria.
