Chapel Hill's Infrastructure Fund post N20.4 billion profits in 2023

Chapel Hill Denham Nigeria Infrastructure Debt Fund reported a profit after tax of N20.4 billion for the year ended 31 December 2023.

The fund achieved a Net Asset Value (NAV) of N107.54 flat from the prior year suggesting it struggled to find growth amidst inflationary challenges.

In terms of the funds return on equity, Nairametrics estimates it at about 20%. Fund managers earned a fee of N1.3 billion or 6.5% of profits.

Income Surge: Total income almost doubled, soaring to N22.1 billion in 2023 from N11.8 billion in 2022. This growth is anchored by a significant rise in interest income on infrastructure loans, which climbed by over N3.3 billion, and a remarkable recovery in fair value gains on infrastructure loans, swinging from a loss of N621 million to a gain of N543 million.
Stellar Operating Performance: Total operating profit before tax witnessed a rise, hitting N20.4 billion in 2023, a staggering 98% leap from N10.3 billion in the previous year.
Profit After Tax: Maintained at pace with profit before tax, standing at N20.4 billion, reflecting a robust after-tax profitability.
Expense Management: Despite the impressive revenue uptick, total expenses were contained, increasing only slightly to N1.7 billion from N1.5 billion.
Expense Analysis: On the expenses front, operating costs have slightly increased to N1.7 billion from N1.5 billion. This rise is driven by the fund manager expenses which remain the largest expense at N1.3 billion.

Asset Boost: Total assets grew by about ₦13.2 billion, indicating an assertive expansion in the fund’s asset base.
Liability Check: Total liabilities also went up but remained at a manageable level relative to assets, suggesting prudent financial stewardship.
Net Assets Growth: Reflecting on the strength of the fund, net assets increased significantly, which is good news for unit holders.
The per-unit net asset value (NAV), which is a critical measure of a fund’s health, stood at ₦107.54, a slight but positive step up from the previous year’s ₦107.47.

Commentary: Key drivers behind this performance include a stronger focus on high-yield infrastructure loans and disciplined cost management.

The numbers paint a picture of a fund that’s efficiently capitalizing on infrastructure financing opportunities in Nigeria, delivering value to its investors even amidst possible economic uncertainties.

The Chapel Hill Denham Nigeria Infrastructure Debt Fund is designed to channel debt financing into infrastructural development within Nigeria.

The Fund’s goal is to offer investors a steady and reliable income stream by predominantly engaging in debt investments in Nigerian infrastructure projects.
These investments can range from being a majority to a minority share of the total debt in various project phases, including development, greenfield, expansion, recapitalization, rehabilitation, or restructuring.
The fund invests in Marine Infrastructure IPP, Solar home systems, Broadband internet,Captive IPP, Offgrid solar, Pipeline network, Gas processing, Solar Minigrids, Social infrastucture and,Telcom infrastructure