Investment Research

How Alternative Investment Works in Nigeria

by AweStreet

How Alternative Investment Works in Nigeria
Alternative investments in Nigeria offer a diverse range of assets beyond traditional stocks and bonds. Here’s a step-by-step guide on how alternative investment works in Nigeria:
Step 1: Investor Identification
  1. Institutional investors (pension funds, insurance companies)
  2. High net-worth individuals
  3. Savvy investors seeking diversification
Step 2: Choosing Alternative Assets
  1. Private Equity
  2. Real Estate
  3. Hedge Funds
  4. Private Debt
  5. Commodities
  6. Infrastructure
  7. Natural Resources
Step 3: Investment Process
  1. Research and due diligence
  2. Investment selection
  3. Portfolio construction
  4. Risk management
Step 4: Investment Vehicles
  1. Limited Partnerships (LPs)
  2. Limited Liability Companies (LLCs)
  3. Mutual Funds
  4. Exchange-Traded Funds (ETFs)
Step 5: Regulatory Compliance
  1. Securities and Exchange Commission (SEC) registration
  2. Compliance with Nigerian laws and regulations
Step 6: Monitoring and Reporting
  1. Regular portfolio reviews
  2. Performance reporting
  3. Tax compliance
Alternative Investment Platforms in Nigeria
  1. Awe Street Partners Limited
  2. Asset Management Corporation of Nigeria (AMCON)
  3. Nigerian Stock Exchange (NSE)
  4. FMDQ Securities Exchange
Benefits of Alternative Investment in Nigeria
  1. Diversification
  2. Higher returns
  3. Inflation hedge
  4. Long-term growth
Challenges of Alternative Investment in Nigeria
  1. Regulatory framework
  2. Investor education
  3. Risk management
Conclusion
Alternative investment in Nigeria offers opportunities for diversification and growth. Understanding the process, benefits, and challenges is crucial for investors.
References
  1. Securities and Exchange Commission (SEC) Nigeria
  2. Nigerian Stock Exchange (NSE)
  3. Asset Management Corporation of Nigeria (AMCON)
  4. Awe Street Partners Limited
Further Reading
  1. “Alternative Investments in Nigeria: Opportunities and Challenges”
  2. “Nigeria’s Alternative Investment Market: An Overview”
  3. “Alternative Investment Management: Strategies and Best Practices”