Helios Investment Partners has agreed to acquire a minority stake in ARM Pension Managers PFA, a subsidiary of Nigerian pension fund manager ARM Pensions, according to a statement.
Financial details of the transaction were undisclosed, but a source close to the matter said Helios invested approximately $50 million.
Helios declined to comment beyond the statement.
ARM Pension Managers’ revenues grew approximately 45 percent per year between 2008 and 2012, Helios said. Last year, ARM Pensions’ funds under management grew by 37 percent whilst revenue grew by 43 percent and profit before tax went up by 86 percent.
The firm aims to grow the business through a buy-and-build program in what is a “massively underpenetrated market,” said Tope Lawani, managing partner of Helios.
Since Nigeria’s adoption of pension reforms in 2006, the pension industry there has grown by more than 30 percent annually. That number is likely to grow as less than 10 percent of Nigeria’s 70 million person workforce is currently enrolled in the newly established and mandatory pension scheme.
The deal comes after Helios held a $355 million first close for its Fund III in March. The fund came to market late last year with a $1 billion target, LPs reserved an additional $185 million as of late May the firm said in a statement at that time.
Helios was founded in 2004 and manages funds totaling $2 billion. The firm invests in African-based new business formations, growth equity investments, leveraged acquisitions, and structured investments in listed companies, making investments of between $30 million and $200 million per transaction.