Q&A: Experienced Investment Banking & Private Equity professional in Nigeria

About

I am an Investment Associate at Kuramo Capital Management. Kuramo Capital is a multi asset class investment manager with c.US$500m in AUM. Kuramo Capital has investments in over 100 companies across Africa in sectors such as FMCG, Telecoms, Power and Financial Services - with offices in New York (Head office), Lagos and Nairobi.

I have over 7 years investment banking experience involving portfolio management, strategic financial advisory and corporate finance - including Private Equity, Mergers & Acquisitions (advised on over US$450m of completed M&A transactions across Sub Saharan Africa) and Structured Finance. My professional experience cuts across renowned financial institutions including Standard Chartered Bank and Guaranty Trust Bank.

I was called to the Nigerian Bar as a Solicitor & Barrister of the Federal Republic of Nigeria in 2011, I have an MBA (with Distinction) from the University of Dundee, Scotland and LLB Law degree from the university of Hull, England. I have also passed the CFA Level 1 exams.

Ask me anything!

12 Comments
 
Most Helpful
  1. Currency volatility is a constant that will probably be with us in Africa for the foreseeable future. Businesses that earn significant amounts of FX and are able to source production input in local currency could be interesting but only at the right entry price.
  2. The return expectations rule of thumb for indigenous PE players is 3x USD MOIC / >25% USD IRR in 5-7 years (most PE funds here have a 10 year life)
  3. DD requirements are subject to the investment process/mandate of the investor. The quality of financial, market, technical and legal DD is in Africa is the same with other global markets. The variance is usually driven by the ticket size. No need to pay a big 4 consultant $1.5m for DD if the transaction ticket size is $10m
  4. Barriers to entry for global investors with no prior experience on the Continent: Information asymmetry. People who have lived and excelled on the ground, usually have earned their stripes and know the peculiarities around succeeding as an investor on the ground. Whatever structure that provides this ‘real’ local content knowledge to international investors is critical for their success - it could be Co-investing with an indigenous strategic or PE shop, paying a local expert to be a consultant (result driven, option to earn, not every $ front loaded), engage a local expert to represent your interests on the board if you have board seats etc).
  5. Political risk is real. Fortunately African is enjoying its best years of political stability, democracies are witnessing successful transition of power via credible elections etc. Having said that, there’s still an element of risk that is involved. The upsides are huge if executed properly and spot on with timing.
Swag Daddy - talk good. look good. live good.
 

Quite tough but not impossible. From my observation most PE shops don’t have the man power or the will to train raw entry analysts the way IBs will train them. But PE shops are attracted to experienced juniors that can hold their own on a deck and valuation model with minimal support.

Not impossible to be an entry level hire straight out of undergrad if you can demonstrate the skills I mentioned above. This is usually through internships at BB IBs or Boutique advisory shops or if you are lucky a solid PE shop with enough deal flow to improve your learning reps.

In sophomore year, I’ll say try your hands at an internship at one of the type of shops mentioned above. If all else fails, crack on with financial modeling courses, corporate finance courses and of course the time consuming CFA level I.

All the best!

Swag Daddy - talk good. look good. live good.

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