Alternative Investment

A Guide to Alternative Investing in Nigeria’s Private Market

by AweStreet

A Guide to Alternative Investing in Nigeria’s Private Market
Alternative investing in Nigeria’s private market offers a unique opportunity for investors to diversify their portfolios and achieve higher returns. The private market in Nigeria is characterized by a growing number of private companies, start-ups, and small and medium-sized enterprises (SMEs) that offer attractive investment opportunities. In this guide, we will explore the benefits, types, and strategies of alternative investing in Nigeria’s private market.
Benefits of Alternative Investing in Nigeria’s Private Market
  1. Diversification: Alternative investments offer a diversification benefit, reducing reliance on traditional assets.
  2. Higher Returns: Alternative investments have the potential to generate higher returns than traditional assets.
  3. Impact Investing: Alternative investments can have a positive impact on Nigeria’s economy and society.
  4. Exclusive Access: Alternative investments offer exclusive access to innovative and high-growth companies.
Types of Alternative Investments in Nigeria’s Private Market
  1. Private Equity: Investing in private companies, either through direct investment or private equity funds.
  2. Venture Capital: Investing in early-stage companies with high growth potential.
  3. Real Estate: Investing in physical property, such as residential or commercial buildings.
  4. Infrastructure: Investing in infrastructure projects, such as energy, transportation, and real estate development.
  5. Art and Collectibles: Investing in art, collectibles, and other unique assets.
Strategies for Alternative Investing in Nigeria’s Private Market
  1. Direct Investment: Investing directly in private companies or assets.
  2. Fund Investment: Investing in private equity or venture capital funds.
  3. Co-investment: Co-investing with other investors or funds.
  4. Active Management: Actively managing investments through board representation and strategic guidance.
Challenges and Risks
  1. Lack of Regulation: Limited regulation and oversight in the private market space.
  2. Lack of Transparency: Limited information and transparency in private market investments.
  3. High Risk: Alternative investments are often higher-risk investments.
  4. Liquidity Risks: Limited liquidity in private market investments.
Conclusion
Alternative investing in Nigeria’s private market offers a unique opportunity for investors to diversify their portfolios and achieve higher returns. By understanding the benefits, types, and strategies of alternative investing, investors can make informed investment decisions. However, it is essential to be aware of the challenges and risks associated with alternative investments and to seek expert guidance and advice.
About Awe Street Partners
Awe Street Partners is a leading alternative investment management company based in Abuja, Nigeria. We offer alternative investment solutions to high-net-worth individuals and institutional investors, focusing on Nigeria’s private market.
Contact us to learn more about our investment offerings and how we can help you achieve your investment objectives.