CONSIDERATIONS FOR INVESTING INTO PRIVATE EQUITY
The Corporation bases its investment decision on a variety of variables including the expected rate of financial and social returns, the sector(s) versus national priorities, the cost of the investment and the payback period, among many. While these factors apply to investments in the private sector, investments into public sector driven projects are primarily determined by economic growth objectives, not only for the medium-term but also for the long-term.
In the circumstances where the applying business has need for strategic partnership, de-risking, profit optimisation and loss minimisation, ENIDC may carefully consider equity injection into the business venture. By and large, the circumstances may include the following:-
Business Reasons for Equity Injection
Where appropriate, the Corporation is open to syndication deals alongside other accepted partner investors.The nature and extent of a partnership varies according to the individual conditions of each project and the value each party will contribute to the project. The fundingterm must not be less than three years.
Other shares may be generated through PPP projects, which would be invested in line with Government’s social responsibility. The Corporation is to safeguard a commercial interest on behalf of the Government. Financing of this portfolio may also involve seeking Budgetary Allocations through appropriation. The Corporation is responsible for the whole budgeting process.