Request for Expressions of Interest: Fund of funds manager — DICE funds, consulting services firms

Technology and Creative Sector

Financing Agreement reference: 2000200005160

Project ID No.: P-NG-K00-009

The Federal Government of Nigeria (FGN) has received financing from the African Development Bank (AfDB), Agence Française de Développement (AFD) and the Islamic Development Bank (IsDB) towards the implementation of the Investment in Digital and Creative Enterprises (iDICE) Programme¹. The objective of the iDICE Programme is to promote entrepreneurship, boost innovation, create jobs, enhance social development, and achieve economic transformation by fostering growth in the digital technology and creative ecosystem, building on brownfield investments and synergies with ongoing initiatives in Nigeria. 

As part of implementation arrangements, the iDICE Programme Coordination Unit (PCU) within the Bank of Industry (BOI) – the Executing Agency for the Programme appointed by the FGN – is seeking to engage the services of a Fund of Funds Manager.

The services under this project include designing, establishing and managing of specific equity fund vehicles targeted at innovative businesses primarily in the technology/tech-enabled and creative sectors. The Fund Manager will be expected to invest in Nigerian startups at their early to growth stages, and in other Funds in a Fund of Funds structure that will cover indirect investments in both the technology and creative sectors.

The expected investment period is four years with follow on investments thereafter. The life of the Fund of Funds will be 15 years (extendable 2 years).

Objectives of the Assignment

The Fund Manager(s)’s assignment will include but not be limited to:

1. Design and set-up of the Fund including legal, operational, financial, exit and reporting structure.
2. Due diligence on every Fund to be invested in, including potential capacity of the Fund to raise matching capital and build an investment pipeline.
3. Establishment of the investment strategy (including prospective nationwide geographic coverage) for the Fund through deal pipeline.
4. Deal sourcing and identification of an eligible and realistic pipeline through effective Environment and Social Due Diligence (ESDD).
5. Deployment of robust due diligence procedures.
6. Deal structuring and negotiations.
7. Preparation of the Fund’s financial, governance, operational policies, performance management strategy, communication plan as well as other relevant documentation for Fund operation.
8. Fund raising (including the preparation of private placement memorandum, pitch books and other marketing materials).
9. Investor management activities including the management of committed capital.
10. Defining and implementation of a value addition strategy for portfolio investments.
11.  Investment compliance monitoring.
12. Development and implementation of a technical assistance framework to complement the equity fund.
13. Implementation of Fund’s Environmental and Social Management System.
14. Exit implementation.

15. Reporting and other administrative services.

Minimum Qualifications/Basic Requirements

(a) Must have at least five (5) years of cognate and documented track record as a Fund Manager of venture capital / private equity funds or comparable institutional investment experience in Nigeria.

(b) Must have evidence of related investments in its portfolio in the last 5 years.

(c) Verifiable pipeline of potential investee companies across Nigeria.

(d) Demonstrable value-addition capabilities concerning portfolio investments.

(e) Must demonstrate a track record of:

i) Equity/quasi-equity Venture Capital (VC) fund structuring and setup in the last 5 years

ii) Capital raise and equity fund management in the last 5 years.

iii) Proof of existing network with VC traditional investors.

iv) Managing large VC Funds including financial return and development impact achieved in the last 5 years.

(f) Experience in the Nigeria / Sub-Saharan VC, including partnerships with start-ups, active Enterprise Support Organizations.

(g) Evidence of a strong operational Fund Management team with an understanding of the Nigerian investment segment, including experienced investment staff and robust middle- and back-offices.

(h) Must be willing to invest at least 2% of Total Capitalization towards the Total Capital Pool required for investment in the assigned Fund.

(i) Must possess existing relationships and network with relevant local and international industry players (Technology and Creative sector).

(j) An understanding of the ecosystem (Technology and Creative) elements that must be in place to support the growth of equity investments in Nigeria will be an added advantage.

(k) Must possess a clear geographic understanding of the various states and the funding landscape in those states.

(l) Must demonstrate capacity and resources to implement an ESMS.

(m) Ability to effectively profile the opportunity sphere across all 36 states and the Federal Capital Territory (FCT). The Fund Manager should be available to coordinate and direct requests for funding from interested businesses throughout the country.

Consultants may constitute joint ventures to enhance their chances of qualification. In this case, the arrangement must be clearly indicated in the submission vide an organogram stating the members of the consortium. Other members of the consortium, registered in Nigeria will be required to provide the above information as relevant/applicable. Firms that are registered outside of Nigeria will be required to submit relevant documents as applicable to their countries of jurisdiction.

Greenfield funds may apply provided the promoters demonstrate a deep experience in fund management, investment execution, multilateral development and a detailed understanding of the Nigerian environment.

The Bank of Industry (BOI) now invites eligible consultants/Firms to indicate interest in providing these services by submitting their expressions of interest, demonstrating experience in performing similar assignments with references and showing responsiveness to the qualifications requirements outlined in this REOI and Terms of Reference, which can be downloaded from www.boi.ng/idicetor.

Eligibility criteria and the selection procedure shall be in accordance with the African Development Bank’s “Procurement Policy for Bank Group Funded Operations” October 2015, which is available on the Bank’s website at http://www.afdb.org.

EOI submissions should not exceed 20 pages, excluding supporting documents to be submitted as detailed under the Eligibility Criteria in the Terms of Reference.

Interested firms may obtain further information at the address below during the Bank’s office hours, 8 AM to 4 PM  (WAT) on working days.

Expressions of interest MUST be delivered in hard and soft (in a USB flash drive) copies to the address below no later than January, 30, 2025 at 12 Noon (WAT) and mention “EXPRESSION OF INTEREST: Fund of Funds Manager for the Investment in Digital and Creative Enterprises (iDICE) Programme”.

Attn. 

The iDICE Programme Coordination Unit 

Bank of Industry 

23, Marina, Lagos 

E-mail: [email protected] (for enquiries only)

Tel: 0700 225 5264 (0700 CALL BOI)