US fund management firm, Pecora Capital, has decided to swim against the current by agreeing to come up with $2 billion for Nigerian infrastructure projects. This amount is to be raised over the next 18 months.
Aaron Smith, Managing Director of Pecora, said his the firm decided to get involved with what he admitted was a struggling economy because they believed that there were significant long-term gains to be made.
“As a long-term investor, we see a time of crisis as an opportunity”, he said.
He pointed out that their decision to commit resources to projects in Nigeria was made after considering current realities and potential benefits to be reaped.
“The fundamentals and demographics in Nigeria, in terms of population and infrastructure deficits all offer huge opportunity and high returns”.
Smith also revealed that the areas of possible investment for the fund include agriculture, telecommunications and transport- sectors with a huge demand for improved infrastructure. He further disclosed that he expects the fund to rake in returns of 25 percent a year over its seven-year lifespan.
The Nigerian fund will be based in the Cayman Islands. Investment in the fund should come from the US, Asia and Europe if all goes according to plan.
