ACTIS invests $62 million in Nigeria’s Sigma Pensions

Actis GP LLP (“Actis”), a leading multi-asset, pan-emerging markets investor, with more than $7.6 billion of capital currently under management, has through Actis Golf Nigeria Limited (a special purpose vehicle ultimately controlled by Actis) acquired a total of 984, 539,475 (Nine Hundred and Eight Four Million, Five Hundred and Thirty Nine Thousand, four hundred and seventy five) share capital of Sigma Pensions Limited (“Sigma Pensions”).
The acquisition resulted in Actis, Sigma Securities and the Management team of Sigma Pensions jointly owning a 100% of Actis Golf Nigeria Limited.
Founded in 2004 and headquartered in Abuja, Sigma Pensions is among the first seven (7) PFAs licensed by the National Pension Commission (PenCom) and now has over 600,000 registered customers. Working from Zonal, Branch Office and Service Centres across the nation, it administers and invests funds on behalf of its customers which cut across the entire country.
Actis said it sees great scope for further growth of the business as the Pension Industry in Nigeria remains significantly underpenetrated, with pension assets constituting only 5 percent of GDP.
Over the last decade, the Pension Industry has demonstrated impressive growth and is poised for further expansion.
Actis’ global presence and expertise in the financial services sector ultimately places it in a unique position to provide Sigma Pensions with expertise to continue on its impressive growth trajectory and further strengthen the underlying operations of the business.
Having deployed more than $750 million of equity investments globally in the financial services sector, this transaction is testaments to Actis’ commitment to bringing to bear its deep domain knowledge and expertise in assisting in the growth of the pension industry in Nigeria and specifically in Sigma Pensions.
Actis said it sees tremendous potential in the asset management industry in particular, backing emerging market consumers to secure their future by saving and investing appropriately.
Natalie Kolbe, Partner at Actis commented on the transaction: “Building on our extensive experience in the asset management and distribution sector, we are very excited to be investing behind a growing consumer demand for future financial protection and well-being in Nigeria.  In Sigma Pensions, we have identified a well-managed, solid business with ‘best in industry’ back office, IT and operational systems and excellent customer service that can leverage these underlying secular trends.”
Tony Abakisi, Investment Principal from Actis’ Lagos office, added: “Sigma Pensions sits in an under-penetrated, well-regulated market and has excellent growth prospects.  We are excited to be investing in the Nigerian pension industry and to be partnering with Mr Modibbo and a great management team to support growth initiatives, including extending the core business, enhancing the brand, and creating a platform for further expansion within Nigeria.”
Mr Umaru Modibbo, CEO of Sigma Pensions commented: “We are delighted to welcome Actis as a new partner, one that understands our business and brings deep asset management and distribution expertise, as well as an unrivalled track record in Africa. With Actis’ help, we look forward to continuing our growth trajectory and creating more opportunities.”
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$7.6 billion funds under management.  Applying developed market disciplines to emerging markets, c. 100 investment professionals in twelve  countries identify investment opportunities in private equity, energy and real estate.