A Nigerian investment banker has launched a $25mn acquisition fund targeting distressed real estate companies and microfinance banks, betting that a wave of financial strain across sectors will create opportunities to build larger regional businesses.
Kunle Ilori-Diamond, chairman of Wardiere Oakmount, said the fund would acquire struggling but viable property firms and licensed microfinance banks in Nigeria before expanding into other African markets including Ghana, Kenya, Tanzania and Zambia.
The initiative comes as many Nigerian businesses grapple with elevated borrowing costs, persistent inflation, currency volatility and tighter regulatory requirements that have increased pressure on balance sheets.
While economic reforms introduced by President Bola Tinubu have attracted renewed foreign investor interest, they have also raised operating costs for many domestic companies.
Ilori-Diamond said the fund would focus on businesses with established brands, operational histories and customer bases that have become constrained by liquidity challenges and limited access to growth capital.
