Commonwealth Development Corporation (CDC) Group has continued to provide financial support to small and medium enterprises in Nigeria. The CDC Group recently announced another round of investment that supports the developmental plans of CardinalStone Capital Advisors Growth Fund (CCA).
CDC Group invested $15 million in CCA to enable them execute their developmental projects for small and medium businesses within Nigeria. The partnership between these two firms has spanned over two years, with CDC playing a key role in the formation of the fund.
This funding is among various investment CDC has made for the growth of Africa businesses. Recall that the United Kingdom’s development finance institution had entered into a master risk participation agreement worth $100 million with African Export-Import Bank (Afrexim) last year November.
According to a report by Digest Africa, CDC Group, alongside African investment firm, Kuramo, have facilitated additional investment of $15 million from FMO; a Dutch development bank, and NSIA (the Nigerian sovereign wealth fund). Despite attaining funding of $50 million at first close, CCA still plans to raise up to $100 million by final close of the Fund.
Beneficiaries of fund
CardinalStone Capital Advisors Growth Fund allocate investment into six sectors, agriculture, industrials, FMCG, healthcare, education and financial services. Companies operating in these sectors that support job creation and import substitution to diversify the Nigerian economy are expected beneficiaries of this fund.
CDC Group’s growing list of investments
CDC is constantly seeking more ways to create domestic and foreign investment in Nigeria. Last year November, Nigerian politicians, regulators, and local investors met with a CDC delegation led by Chief Executive Nick O’Donohoe and Chairman Graham Wrigley met Nigerian investors to deliberate on continued collaboration with Nigeria – CDC’s ambition is to invest up to US$4.5bn across Africa over the next four years.
CDC’s track record includes backing Nigeria’s first private equity fund, the Capital Alliance Private Equity Fund I from African Capital Alliance twenty-years ago, and has invested in all five of its subsequent funds. An investment of $25 million was also made into Nigerian-led, Synergy Private Equity Fund II which invests in high-growth SME businesses in Nigeria and its West African neighbours.
CardinalStone Capital Advisers profile
CardinalStone Capital Advisers (CCA) is a Private Equity Investment Adviser operating out of Lagos Nigeria. Established in 2016, CCA is a spin-off from CardinalStone Partners, an independent investment banking firm in Nigeria. Prior to the spin-off, the CCA team operated as the Principal Investments Division of CardinalStone Partners. CCA invest in high potential SMEs that can grow into a leader in their various sectors that are deemed strategic to the development of Nigerian and regional West African economies.