Atlas Merchant Capital, an African investment company founded by former Barclays Plc Chief Executive Officer, Bob Diamond and Ugandan entrepreneur Ashish Thakkar, plans to make its first investment within ten-months as it seeks to tap into growing demand for financial services within Africa.
“Our first investment will be done very soon,” said Diamond in an interview with BusinessDay, on the sidelines of the Renaissance Capital Africa investor conference, held in Lagos, yesterday.
“The opportunity for financial services as it grows and becomes a major part of the economy is enormous,” said Diamond.
Nigeria’s economy has expanded an average of 8.2 percent annually since 1999, pushing its per-capita income as of last year to $1,725 from $310 in 1999, according to IMF estimates.
There are currently only 44,000 mortgages and about 300,000 credit cards, for its 170 million people, highlighting the opportunity for growth.
Diamond and Ugandan entrepreneur Ashish Thakkar raised $325 million in an initial public offering for Atlas Mara (IPO) – a cash vehicle controlled by Atlas Merchant Capital and listed in London- in December. They committed $20 million of their own money to the venture.
Atlas expects to focus its investment on financial services companies with operations in Africa.
“We came away from our equity raise taking a very serious look at investing strategically within Sub-Sahara Africa,” Diamond said.
United Bank for Africa, based in Lagos, Nigeria had been cited as a possible target for Atlas in the past, although UBA’s $1.6 billion market capitalisation (Feb.10), which is 5 times Atlas Mara seed capital, makes it difficult to swallow.
A more plausible target for Atlas Mara may be one of the three-bridged banks, up for sale by Nigeria’s Asset Management Corporation AMCON.
Atlas Mara will see an active role in driving capital and liquidity into Africa,” said Diamond.
The reforms that have taken place in Nigeria in the power sector, building materials, telecoms and retail services has Financial services at the core said Diamond.
“There is a lot of excitement about Nigeria now. Our recent fund raising showed the quality and diversity of investors, looking at Africa.”
