ARM Investment Managers has officially launched the ARM Private Debt Fund, a ₦200 billion private credit programme designed to expand access to structured, long-term financing for scalable Nigerian businesses while offering institutional investors a stable and diversified source of income.
The Fund was formally introduced to the market at a media briefing held in Lagos on Monday, January 12, 2025. The session brought together members of the business and financial press to discuss the growing importance of private credit in Nigeria’s capital markets and its role in addressing long-standing financing gaps faced by small and medium-sized enterprises.
The ARM Private Debt Fund is structured as a closed-ended private credit vehicle and is focused on providing non-bank financing to businesses with strong operating fundamentals and predictable cash flows. The Fund will deploy capital primarily through senior secured term loans and revolving credit facilities, alongside selective subordinated debt where appropriate. Series I of the programme is targeting an initial raise of ₦25 billion under a broader ₦200 billion shelf programme.
Nigeria’s SMEs remain a critical driver of economic activity, contributing a significant share of GDP and employment across the country. Despite this importance, many viable businesses continue to struggle to access long-term financing that aligns with their growth cycles. Traditional banks, constrained by regulatory requirements, funding costs, and balance sheet considerations, often prioritise short-term lending or sovereign exposures. This dynamic has created a structural financing gap that private credit is well positioned to fill.
Private credit provides an alternative source of capital by allowing professional investment managers to lend directly to businesses using flexible, cash-flow-aligned structures. Unlike conventional bank loans, private credit facilities are designed to match the operational realities of businesses, offering longer tenors and tailored repayment terms while maintaining strong legal and risk controls. For growing enterprises, this form of financing can support expansion, asset acquisition, working capital optimisation, and long-term competitiveness.
Speaking at the launch, Deji Opeola, Chief Executive Officer of the ARM Private Debt Fund, described the initiative as a deliberate response to Nigeria’s evolving financing needs.
According to him, the Fund has been structured to provide patient and well-designed capital to businesses while maintaining a strong focus on capital preservation and risk management for investors. He noted that disciplined credit underwriting, asset-backed lending, and active portfolio monitoring are central to the Fund’s investment approach.
From an investor perspective, the ARM Private Debt Fund is targeted at qualified institutional investors, development finance institutions, family offices, and high-net-worth individuals seeking portfolio diversification through private credit. The Fund is expected to deliver returns of approximately 300 basis points above the Federal Government of Nigeria 10-year bond yield, subject to market conditions. Returns are driven primarily by interest income rather than market price movements, offering investors exposure to a less volatile asset class relative to public equities and bonds.
Strong governance is a core pillar of the Fund’s design. Investment decisions are overseen by independent governance structures, including an Investment Committee and an Advisory Board, supported by strict concentration limits, conservative leverage, and continuous portfolio oversight. This framework is intended to ensure consistency, transparency, and disciplined risk management throughout the life of the Fund.
Beyond investors, the launch of the ARM Private Debt Fund also represents an opportunity for eligible SMEs and mid-sized businesses seeking growth capital. The Fund is open to businesses with proven operating histories, sound governance structures, and clear plans for the use of funds. Financing is targeted at companies looking to expand operations, strengthen working capital, acquire productive assets, or optimise their balance sheets. Priority sectors include manufacturing, trade and distribution, agribusiness value chains excluding primary agriculture, logistics, services, and technology-enabled businesses.
The Fund forms part of ARM’s broader alternatives investment platform, which spans infrastructure, real estate, trade finance, and sector-focused strategies. Domiciled in Mauritius and structured as a multi-currency vehicle, the ARM Private Debt Fund is designed to deploy both naira and hard-currency capital. While the initial focus is Nigeria, the platform has been structured to support expansion into other Sub-Saharan African markets over time.
Commenting on the strategic significance of the Fund, Wale Odutola, Group Chief Executive Officer of ARM, described the launch as the foundation of a long-term private credit platform for the Group. He noted that the objective is to support sustainable business growth while contributing to the development of a deeper and more resilient private credit market in Nigeria.
With the launch of the ARM Private Debt Fund, ARM is positioning itself at the forefront of private credit investing in Nigeria. By connecting long-term capital with productive enterprise, the Fund aims to support business growth, job creation, and economic resilience while delivering consistent, risk-adjusted returns to investors.