The Chief Executive Officer, FMDQ Group, Mr Bola Onadele, has said that the global private equity Asset Under Management (AUM) has hit $4.50 trillion in the last 10 years.
Onadele disclosed this at the Coronation Merchant Bank interactive session webinar with the theme: “Capital mobilisation through the private markets,” on Monday in Lagos.
In his keynote address at the webinar, the FMDQ boss said that part of these global funds find their way into Africa, especially Nigeria, urging the country’s private companies to tap into opportunities in the market for growth and development.
“As in the case of global private markets (PE) where private equity accounts for 60 per cent of total AUM, private markets in Africa and Nigeria is dominated by the Private Equity segment,” he added.
Onadele, who was represented by the Head, Private Capital, FMDQ Private Markets Ltd., Mr Yemi Osinubi, said that recent survey showed that Nigeria ranked second in the attractiveness of African countries for PE investments over the last three years.
He said that healthcare and life sciences, technology, and agribusiness were viewed as the most attractive sectors over the next three years.
The chartered stockbroker attributed the shift to private capital to the global liquidity crisis of 2008 and 2010. He noted that traditional source of capital has become less available because of the tightening of the Basel two requirements for banks. “Private equity AUM has gone up four times since 2002 as 2015 worth of private equity deal volume has exceeded equity deal in volume,” he said.