Nigeria is in number one on the list of countries that had remarkable private capital inflow in 2021 with global assets under management (AuM) rising by 12 per cent to $112 trillion, significantly above the 20-year growth average of 7 per cent.
This is contained in the new report released by Boston Consulting Group (BCG), a leading global management consulting firm.
The report stated that “with $100 trillion to $150 trillion in capital deployment required to reach net-zero goals by 2050, demand for sustainable investments represents an opportunity that will dominate the sector in both the short and long term.
Roughly $20 trillion to $30 trillion is expected in bond and equity allocations for asset managers, much of it frontloaded over the next few years as more investments flow into climate-transition projects.”
The report further revealed that revenue from alternative assets such as private equity, hedge funds, and real estate assets will grow to more than half of the global revenue in the next five years.
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Commenting, Stefano Niavas, Partner and Managing Director in BCG Nigeria, stated: “Africa’s economy continues to be attractive to private capital investors who are seeking huge returns and Nigeria tops the list of countries that had remarkable private capital inflow in 2021. A larger share of these funds was invested into venture capital assets followed by infrastructure and then private equity. About 145 Venture Capital deals were reported in Nigeria in 2021, with a total value of $1.1 billion, according to African Private Equity & Venture Capital Association (AVCA).”