Ikechukwu Eze
A special feature done last year by TradeInvest Nigeria, an online portal providing credible guide to business and investment in the country identified him as one of the country’s few young business moguls to watch. Osaze Osifo, chief executive of Travant Capital, an alternative investments firm actually lives up to that billing as a new generation creative entrepreneur.
Travant Capital, a private equity fund which he founded three years ago was able to raise over $100 million for its first closing in 2008 with plans to subsequently attain a fund size of $300m. “We decided to set up the fund to take advantage of the growth opportunities. The socio-political and economic environment in the region has improved greatly in the last few years with the benefit of a new post-independence generation of business leaders coming to the fore,” says Osifo.
Before returning to Nigeria Osifo, 42, had worked with HSBC in London, where he was said to have brokered several momentous deals including helping to arrange financing for Econet (now Zain) Nigeria’s successful bid for a GSM licence. In a recent interview with the over 100 years old Britain’s prime Africa organisation, The Royal African Society, Osifo stated that more bright young people like him are now being encouraged to return home following the opening up of the business space by the on going economic reforms. Citing the sale of mobile phone licences in 2001 as the start of the new era, he said: “More and more people in Nigeria have too much at stake. They have something to fight for and they don’t want their businesses ruined by the reputation for corruption.”
Established with the intent of playing a leading role in investments in Africa, the company’s US$107m first private equity fund, raised in May 2008 was seen as the largest fundraising from domestic investors in sub-Saharan Africa outside of South Africa. “We add value by helping companies realign their strategies and offering clear support on the operational side,” he says of the operations of his company.
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Travant’s investment region is said to span 22 countries in West and Central Africa with a key focus on seven promising countries – Angola, Cote d’Ivoire, Democratic Republic of Congo, Ghana, Nigeria and Senegal. Unlike other equity firms that look into Africa from abroad, Osifo believes that locating Travant in Africa gives the firm the advantage of immersing itself within the receiver communities and allows for close interaction with portfolio companies and other stakeholders. “The fund will invest broadly in consumer goods, energy services, financial services, media and entertainment, mining, telecommunications, transportation and logistics.
“Consumer goods should do well as African economies expand,” says Osifo in a chat with AfricaInvestor. In real estate, Travant Capital is also keen to invest in opportunities across the sector’s value chain, from brick-making to top-quality commercial property. “We will also look at management buyouts, public to private transactions, consolidation opportunities and transplants, but early-stage venture capital transactions are definitely off the agenda,” he says. So far, Travant is said to have invested in few firms including Dorman Long Engineering, an oil and gas services company.
“With offices in Lagos, Nigeria, we are never more than a few hours from any location in our region. In addition, our multilingual professionals were born in or have lived in six African countries. We believe this presence in our investment region gives us better access to investment opportunity and better enables us to add value to our portfolio companies.” “The global background of our investment professionals, our management and our board give us an extensive global network. This network enables us to apply global resources and know-how to local challenges. Our networks extend to Western and Eastern Europe, Southern Africa, the Middle East and Asia. In addition to providing a global perspective, this network gives us access to global capital and potential strategic partners for ventures in our investment zone.
As the chief executive, Osaze who holds a first degree in mechanical engineering and an MSc in both finance and Management Science is responsible for the company’s operating, investing and fundraising activities Before starting Travant, Osifo was CEO of Ocean and Oil Holdings, then the holding company of Oando. Prior to his return to Nigeria, he had spent eleven years with HSBC in London where he served as a proprietary trader in the Global Markets division and in Telecommunications in the Investment Banking division.
A strong believer in the power of investment in growing economies, Osaze is working towards improving private sector investment in Africa which he considers presently inadequate. “We believe that the private sector, with appropriate oversight and governance, is the best shepherd of Africa’s resources.” Osifo’s passion in this regard is said to be driving Travant’s efforts towards empowering entrepreneurs to pursue pragmatic opportunities to be able to create returns for investors, jobs and economic growth.
