In today’s evolving African investment landscape, families and founders are asking smarter questions:
How do we invest wisely? What structures protect our values, not just our money? And most importantly—what suits us?
With over $4 billion raised in private capital across Africa last year, we’re seeing families step into deals that offer more than just returns. From co-investments in energy and logistics to strategic funding rounds in fast-growing sectors, private capital is offering an alternative path to growth—one that blends control, long-term thinking, and opportunity.
But not all private capital is created equal. Here’s how to know what’s right for you.
- Understand Your Appetite for Control
Traditional private equity may require you to give up decision-making power. In contrast, direct private capital investments (especially co-investments) let families stay involved or even lead. If your family values oversight or influence, this is a better fit.
- Know Your Return Expectations vs. Timeline
Do you need liquidity in 2–3 years, or are you playing the long game? Many African families are turning to blended vehicles or structured notes that offer stable returns without the volatility of public markets or the rigidity of traditional PE timelines.
- Align with Your Values & Identity
Legacy is beyond money — it’s meaning. Whether it’s investing in agri-value chains, renewable energy, or ed-tech, private capital gives you the flexibility to back sectors you believe in without compromising returns.
- Decide on Your Level of Involvement
Do you want to sit on a board, be a silent backer, or invest via a family trust? Private capital structures can be passive, active, or hybrid, depending on your family’s stage, generation, or bandwidth.
- Protect Against Loss by Structuring First
One of the biggest risks in private capital is jumping in without a plan. The right legal and financial structuring — trusts, holding companies, governance protocols — can shield your assets, manage risk, and ensure alignment across generations.
It’s Not About What You Invest In, But How
Private capital opens new doors, but the real advantage lies in how you approach it. The families getting it right aren’t necessarily chasing trends — they’re building structures around their strategy. They understand that every opportunity must pass through a filter: Does this serve our long-term vision?
And behind those decisions are advisors who think beyond transactions— structuring, aligning, preserving. Whether it’s building a family holding company, evaluating a co-investment deal, or setting up governance frameworks to align generations, they help you decide when to say yes, how to say no, and what to build in-between. They recommend vehicles and help design the structures that carry them.
In today’s Africa, that’s the difference between chasing returns and building a legacy.
Private capital is no longer just for institutions or billionaires. Across Nigeria and the continent, families are investing in deals that make sense for them:
- Co-investing in alternative financing platforms
- Participating in structured real estate pools with guaranteed returns
- Backing succession-ready businesses in logistics, infrastructure, and food processing
- Partnering with operating founders while holding equity silently through trusts
These opportunities offer greater flexibility, faster exits, and fewer rigid terms than traditional private equity—plus the chance to shape the kind of Africa you want to leave behind.
By Anuoluwapo Dada
Junior Associate
