Don't Miss


Home   >   Nigerian Stock Exchange   >   SEC promises effective regulation of private equity firms

SEC promises effective regulation of private equity firms

By on November 16, 2013

As part of efforts to perform its investor protection mandate, the Securities and Exchange Commission (SEC) Thursday promised to effectively regulate the private equity/hedge funds space in line with global best practices.

Speaking at a seminar on private equity and venture capital fund registration, Deputy Director, Collective Investment Services, SEC, Mrs. Chy Nwude, said changes seen in global regulatory landscape in private equity funds came about in response to the global financial crisis of 2008.

The seminar was put together by Henshaw Capital Partner Limited in partnership with the SEC and Agusto & Co. Limited.

Nwude, who represented the Director General of the commission, Ms Arunma Oteh, stated that reforms in private equity and hedge fund space are premised on the belief that the alternative investment industry contributed in no small measure to the global financial crisis.

“The regulators are imposing significant transparency and disclosure obligations on the private equity fund industry to guard against systematic failure as the collapse of a major hedge fund could significantly impact the financial sector,” she said.

Meanwhile, Founder and Chief Executive Officer of Henshaw Capital Partner, Babara James, said Nigeria had the capacity to build a $20 billion private equity industry by 2020.
Babara, who co-chairs the Nigerian Private Equity and Venture Capital Development Committee of the federal government, believed  private equity and venture capital could be a catalyst for business growth and job creation in the country.

She said Henshaw Capital was founded to promote private equity and venture capital as an alternative asset class to broaden the range of financial instruments available to institutional investors, expanding the financial landscape and deepening the financial system in Africa.

“Henshaw specialises in unlocking and channelling sources of long term capital into high growth businesses that generate superior returns and create jobs fastest. We complement the more widely available sources of short-term capital from traditional banks and other financial institutions,” James said.

 

 

[This Day]