General news

Global private equity assets have reached $ 4.50 billion in 10 years – FMDQ



Global private equity assets have reached $ 4.50 billion in 10 years – FMDQ

By Chinyere Joel-Nwokeoma

FMDQ Group CEO Mr. Bola Onadele said global private equity assets under management (AUM) have reached $ 4.50 trillion in the past 10 years.

Onadele revealed this during the Coronation Merchant Bank interactive session webinar on “Capital mobilization through private markets” on Monday in Lagos.

Onadele, in her opening speech at the webinar, said a portion of these global funds are heading to Africa, particularly Nigeria.

He, however, urged private companies in Nigeria to exploit market opportunities for growth and development.

“As is the case in global private markets (PE) where private equity represents 60% of total assets under management, private markets in Africa and Nigeria are dominated by the PE segment,” he said. he adds.

Onadele, who was represented by the Head, Private Capital, FMDQ Private Markets Ltd., Mr. Yemi Osinubi, said a recent survey showed Nigeria ranked second in attracting African countries for investment. in private equity over the past three years.

He said healthcare and life sciences, technology and agribusiness were seen as the most attractive sectors over the next three years.

Onadele attributed the shift to private capital to the global liquidity crisis of 2008 and 2010.

He noted that the traditional source of capital has become less available due to the tightening of the two Basel requirements for banks.

“Private equity outstandings have quadrupled since 2002, as the volume of private equity transactions in 2015 exceeded the volume of capital transactions,” he said.

Onadele said institutional investors around the world are looking for alternative channels for their growing funds, especially in infrastructure funds.

Speaking on the drivers of the EP, he added that raising capital in public markets comes with high regulatory requirements and the cost of compliance for state-owned companies is high.

“As such, many companies prefer to stay private for as long as possible and take advantage of the private capital market,” Onadele said.

According to him, private markets give investors access to unusual investment opportunities while offering diversification benefits.

He noted that the main objective of the establishment of FMDQ Private Markets Ltd was to democratize the capital markets by promoting the inclusion of private companies and unleashing the largely untapped pool of private capital in Nigeria.

Onadele revealed that the platform had registered around 264 billion naira in banknotes since its inception in 2020.

“In 2020, around 100 billion naira of private corporate bonds were rated on the platform, this semester alone we have around 153 billion naira to note.

“We had a mix of promissory notes, corporate bonds, Sukuk bonds and we have the first Green Bond which will also be noted in the coming month.

“Our guideline on equities should come out very soon, the FMDQ is known for bonds, but we spoke with the venture capital community, the private equity community, on how to develop this equity market for them. .

“And we think it’s going to be a strong market for them that will help small and medium businesses that are trying to raise capital.

“Our equity guideline will be released in a month and we will start rating equity securities,” he said.

Previously, the Managing Director of the Coronation Merchant Bank, Mr. Banjo Adegbohungbe, said that the interactive session was instituted to stimulate discourse and clarify enhanced relevant economic and societal issues as well as develop credible and achievable solutions to common challenges.

“We intend to continue to facilitate productive engagements like this with relevant stakeholders to generate solutions for critical sectors of the economy and add value to our existing and potential customers.

“We choose the theme for today’s session:” Raising capital through private markets, especially because of the potential we see in the private segment of the Nigerian capital market.

“This market has seen its fair share of missteps in the past, but we have started to see very credible and increasingly sustainable structures being built to organize the otherwise arbitrary situation seen previously in this area of ​​the market.

“From technology to renewables and various other sectors, it is now clear that companies need to go public to attract much-needed capital,” Adegbohungbe said.

He noted that with clarity on entry, follow-up and exit, investors would make more informed decisions about the investment opportunities that abounded in credible private companies. (NAA)

Short Link:


NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @

Recent Posts

United States Strengthens Public Health Emergency Preparedness and Response in Nigeria 2021 World Pharmacists Day: Garki Hospital begins deworming of 1,000 persons Ex-NAF Chief denies transferring N66m – NEWS AGENCY OF NIGERIA Equatorial Guinea’s mega gas hub monetizes regional resources and consolidates the country’s position as Africa’s leading cross-border gas company Armenia, Azerbaijan mourn dead on war anniversary Instagram hits pause on kids' version after criticism Handling surrendering Boko Haram terrorists in Borno Announcement of the 16 finalists for the 2021 VC4A Venture Showcase – Seed & Series A Tracks Volcano lava flow halts but many confined over toxic gas fears Senator Adeola distributes Agricultural Seedlings in Senatorial District Pageant offers special youth empowerment in showbiz HOSCON Youths Extols The Developmental Strides of President Buhari Thailand to cut quarantine for vaccinated tourists Germany’s Social Democrats win election but uncertainty beckons APC chieftain advises politicians to desist from rumour, malicious propaganda IOM restores community theater to promote social cohesion in Sabha, southern Libya Nigeria at 61: Access Bank to reward 14 customers with N1m each Rotary Club donates books to Stella Maris School, Abuja Legislative aides threaten to picket NASS over 2019 salary arrears 61st Independence : UK-based Nigerian Accountant charges citizens on country’s ownership Coronavirus – Angola: USG shares 464,090 additional doses of Pfizer Covid-19 vaccine with Angola Envoy visits Russian Varsity, makes case for stranded Nigerian students Macron hit with egg during restaurant fair visit Rwanda: Round Ups-Linked to Commonwealth Meeting China calls for limits on 'non-medical' abortions Brussels waits to see who will govern Germany Running for harmony: Morobo residents celebrate International Day of Peace Dutch PM 'targeted for kidnapping by drug gangs': reports The Ministry of Foreign Affairs strengthens the network of Finnish missions abroad and invests in measures promoting the availability of skilled labor Coronavirus: 21% of adults now fully vaccinated, as South Africa emerges from third wave Reopening – call for experts from WHO regions of Africa and South-East Asia to join the Scientific Advisory Group on the Origins of New Pathogens (SAGO) Afghan saffron boss says Taliban will not silence her UNMISS educates Twic County residents in Warrap on revitalized peace deal Time For Urgent Action And Funds To Make Water Central To African Climate Policies Gabonese President Bongo pleaded for an inclusive energy transition Energy Capital & Power, Libya-Analysis LLC partner for the Libyan Energy and Economy Summit 2021 Africa Women Innovation and Entrepreneurship Forum (AWIEF) wins Associations Advance Africa award for outstanding achievement in diversity and inclusion In good times as in bad times, rugby is the life of Sanaa Barakat, the unstoppable of Rugby Africa Gambia Ministry of Petroleum and Gambia National Petroleum Company to attend MSGBC 2021 Oil, Gas and Electricity Conference South Korea’s President Moon raises dog meat ban Africa Oil Week set to host first-ever in-person event in Dubai Fuel 'panic-buying' in UK could see army to rescue Nigerian Mission, Unions in Italy vow to get justice for murdered lady One dead in strong quake on Greek island of Crete Pelosi hints infrastructure delay as US Congress begins huge week Imo leads as NCDC reports 255 new COVID-19 infections UNGA 76: Nigeria seeks UN support against counter-terrorism Cleric tasks women on inculcating good morals in children, society CBN pledges more support for youth empowerment 5.7-magnitude quake shakes Philippines’ main island