Nigerian banker launches $25mn fund to buy distressed property, microfinance firms

Nigerian banker launches $25mn fund to buy distressed property, microfinance firms

A Nigerian investment banker has launched a $25mn acquisition fund targeting distressed real estate companies and microfinance banks, betting that a wave of financial strain across sectors will create opportunities to build larger regional businesses.

Kunle Ilori-Diamond, chairman of Wardiere Oakmount, said the fund would acquire struggling but viable property firms and licensed microfinance banks in Nigeria before expanding into other African markets including Ghana, Kenya, Tanzania and Zambia.

The initiative comes as many Nigerian businesses grapple with elevated borrowing costs, persistent inflation, currency volatility and tighter regulatory requirements that have increased pressure on balance sheets.

While economic reforms introduced by President Bola Tinubu have attracted renewed foreign investor interest, they have also raised operating costs for many domestic companies.

Ilori-Diamond said the fund would focus on businesses with established brands, operational histories and customer bases that have become constrained by liquidity challenges and limited access to growth capital.

“Africa is entering a new era where institutions, not individuals, will define economic prosperity,” he said.

“Our objective is to identify businesses with strong foundations, provide the capital and strategic direction they require, and transform them into regional institutions capable of serving multiple African markets.”

The strategy reflects a growing trend among investors seeking acquisition opportunities in sectors facing consolidation pressures.

Nigeria’s real estate industry has been hit by rising construction costs, higher financing expenses and weakening consumer purchasing power, while microfinance institutions face increasing regulatory demands and capital requirements.

A central pillar of the plan is the acquisition of licensed microfinance banks, which Ilori-Diamond described as critical to building an integrated property-finance platform.

Combining real estate businesses with regulated lenders could provide access to construction finance, mortgage products and small-business lending while helping address financing gaps in a country facing a housing deficit estimated in the millions of units.

The fund plans to target unit, state and national microfinance banks and will conduct due diligence on prospective acquisitions covering financial performance, liabilities, governance structures, customer relationships and regulatory compliance. Independent valuations will be undertaken before deals are concluded.

Ilori-Diamond said transaction structures would vary depending on the circumstances of individual businesses, allowing founders to retain minority stakes, remain in management roles or exit completely.

“Our objective is not simply to acquire companies,” he said. “It is to preserve entrepreneurial legacies, protect jobs, strengthen institutions and create businesses that will remain relevant for generations.”

The launch comes amid broader efforts across Africa to strengthen locally owned financial institutions and improve access to capital for businesses and households.

Investors have increasingly argued that fragmented industries and undercapitalised companies present opportunities for consolidation, particularly in financial services and real estate.

Ilori-Diamond, whose business interests span Nigeria, the United States and Dubai, said the longer-term ambition is to build a portfolio of African institutions capable of operating across multiple markets and outlasting their founders.

The fund is expected to begin evaluating acquisition targets immediately, with companies invited to participate in confidential valuation and due diligence processes as the platform seeks to expand beyond Nigeria into other African economies.