Duet Private Equity and AMCON are pleased to announce that they signed an exclusive agreement to set up a Fund dedicated to the FMCG sector in Nigeria. The Fund will start with an initial target size of US$ 400 million in which AMCON will contribute 6 portfolio companies currently under its control. The Fund will invest an additional US$200 million into those companies. The Fund will focus on turnaround and distressed situations, which need additional capital and debt restructuring. The companies contributed suffered in the past of excess and expensive bank debt and lack of growth capital to execute their Business Plan. The portfolio will exclusively consist of Food and Beverages companies with local brands.
Ahmed Kuru the CEO of AMCON said: “We are very excited to partner with Duet in this private-public partnership, AMCON is committed to support the private sector in Nigeria and this initiative will bring working capital for many companies which suffered in the past and it is in line with the current administration’s drive towards encouraging fresh injection of direct foreign capital into businesses”
Henry Gabay the CEO of Duet Group and the CIO of Duet Private Equity said: “We are delighted to partner with AMCON in this project, this is the absolute right time to invest in Nigeria and in the FMCG sector, we will invest new capital into those companies as well as bring additional management and industrial expertise. The name of the game in Sub Saharan Africa, will be import substitution and local product development for the foreseeable future. We will bring additional expertise wherever it’s necessary to those companies by teaming up with experienced industrial partners”.
Maty Ndiaye, Managing Director of Duet Africa Private Equity added: “This venture will be very important for Nigeria in this difficult economic environment. At Duet, we are delighted to extend our investment capabilities to the region after investing in Ethiopia, Ghana and Ivory Coast”.
Duet Private Equity will open an office in Nigeria imminently local appointments will be announced shortly who will drive this initiative on the ground.