About Dapo Okubadejo

Dapo Okubadejo is the Head of Corporate Finance and Financial Advisory Services (T&R) in Nigeria and West Africa. He also leads the Africa M&A, PE and Transaction Advisory for the Africa region. Dapo is an accredited Corporate Finance and Transaction Services practitioner. He and his team have published many sector and market focused thought leadership publications.

Author Archive | Dapo Okubadejo

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Consumer demand will drive the next wave of African PE investments






Though Africa has been described as the last frontier market for natural and mineral resources, […]

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Car Gear

Foreign Direct Investment in Africa






The rest of the world is taking note of the fact that African countries are […]

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Strengthening Access to Finance for Micro, Small and Medium Enterprises (MSMEs) in Nigeria

How can financial services best support inclusive growth in Africa? (Part 2)











Inclusive economic growth is growth that leads to job-creation, causing a ripple effect on the purchasing power of the majority of the populace. The private sector, and in particular SMEs, are the drivers of an economy. SMEs are also the largest providers of direct employment and inclusive growth can be achieved through promotion of policies that would drive their development. According to the Central Bank of Nigeria, 96% of Nigerian businesses are SMEs (uS = 53%, Eu = 65%). Inclusive growth can be achieved by positioning these SMEs to take advantage of the opportunities in the economy.

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Leveraging of Mobile Networks

Tips on Deepening Investment Partnerships











At the credit application and processing stage, banks need to invest in systems that allow more efficient and tailored risk profiling. Such a system rewards diligent entrepreneurs with lower lending rates and greater access to capital. Post-disbursement, the establishment of dedicated advisory/support teams can help minimise credit risk and improve credit management by educating and advising SMEs on day-to-day financial management, record-keeping and corporate governance. The incremental cost of this will be easily offset by the increased patronage and lower default rates.

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How can financial services best support inclusive growth in Africa?

How can financial services best support inclusive growth in Africa?











At the credit application and processing stage, banks need to invest in systems that allow more efficient and tailored risk profiling. Such a system rewards diligent entrepreneurs with lower lending rates and greater access to capital. Post-disbursement, the establishment of dedicated advisory/support teams can help minimise credit risk and improve credit management by educating and advising SMEs on day-to-day financial management, record keeping and corporate governance. The incremental cost of this will be easily offset by the increased patronage and lower default rates.

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The importance of SMEs in growing inclusive growth in Africa

The importance of SMEs in growing inclusive growth in Africa











Inclusive economic growth is growth that leads to job creation, causing a ripple effect on the purchasing power of the majority of the populace. The private sector, and in particular small and medium enterprises (SMEs), are the drivers of an economy. SMEs are also the largest providers of direct employment and inclusive growth can be achieved through promotion of policies that would drive their development.

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FIRS and the Principle of Legitimate Expectation

Local knowledge and value-chain approach essential to Africa private equity success











Africa’s enormous growth potential is now an open secret with the International Monetary Fund (IMF) predicting that by 2015 seven out of the top 10 fastest growing economies will be in the region.

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Africa Brief

How To Get Private Equity Exits in Africa Right











Private equity (PE) as an asset class has received reasonable prominence in Africa in recent times. New records are being set both at the levels of fund raising and sector diversity of investments. Africa is becoming increasingly investor-friendly!

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Overview of Foreign Direct Investment in Africa











South Africa, Nigeria and Ghana have over the years been the largest recipients of Foreign Direct Investments (FDI) within the African continent as they jointly accounted for about 50% of the FDI inflow into Africa in 2011.

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Growing Entrepreneurship in Africa

Africa boasts alpha returns for private equity investments











Africa’s private equity (PE) landscape is uncharted and at an early stage of development, however, it is growing steadily and giving good returns. In fact, according to a KPMG survey, a record amount of 25.7 billion rand ($3.03 billion) in PE money from Africa was returned to investors in 2011, up from R18.1 billion in 2010.

According to Dapo Okubadejo, the partner in charge of Corporate Finance & Financial Advisory Services at KPMG Nigeria:

“Africa is now viewed by PE houses and fund managers as a priority investment destination. As growth in other economies have slowed in recent years due to the 2008/9 recession and current crisis in the Eurozone, investors have been looking to emerging markets and economies that will provide higher return rates and Africa is continuously proving its business case for investment.”

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trade borders

Foreign direct investment in Africa











South Africa, Nigeria and Ghana have over the years been the largest recipients of Foreign Direct Investments (FDI) within the African continent as they jointly accounted for about 50% of the FDI inflow into Africa in 2011.

In the second half of 2012, South Africa experienced a sharp decline of 43.6% in FDI compared to the same period in 2011. Despite the sharp decline in the FDI inflow to South Africa, total FDI to Africa increased by 5% indicating increasing flow of FDIs to the other African countries.

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High Growth Markets magazine – Unleashing Africa’s potential

Ways private equity firms can genuinely add value











As previously highlighted, private equity returns continue to outstrip quoted shares and it is certain that operational improvement in portfolio companies is a key component of value creation. Of our sample, 63% had been involved with a private equity-backed business which was subsequently sold and, of these, 77% had been sold for a profit.

According to the survey, the most important contributors to the value uplift were operational improvements and sales growth. Leverage and growth through acquisitions were much less important; highlighting perhaps the reality of the more difficult funding climate.

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Africa Brief: Taste for pizza takes off in Africa and more...

The role of operating partners in private equity-backed companies











As you would expect, operating partners need to have relevant senior managerial and sector expertise as well as strong interpersonal skills. Further, if they are really plugged into the private equity firm and have built up a mutual understanding through working together over time, this can make a real difference in the efficiency of how decisions are made.

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private equity

Private equity executives and operational or industry sector experience











The results of our research show a high degree of consensus on this topic, with private equity directors’ lack of operational or management experience seen as a weakness in the way they interact with portfolio companies. Over 70% of those interviewed said that having managerial, operational or sector experience would give private equity executives more insight into the reality of running a business and a greater empathy with management.

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ICT in Africa – Innovation and emerging technologies to beat the technology gap

Managing portfolio companies most effectively











The Working with Private Equity portfolio companies survey was carried out with more than 300 non-executive directors and senior management who had experience of working with private equity firms. The survey analysed how private equity executives interact with their portfolio companies and the different private equity approaches.

The majority of those surveyed rated the quality of the private equity director’s involvement in the business as good or excellent.

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Working effectively with portfolio companies and creating value

Working effectively with portfolio companies and creating value











In 2012, a comprehensive survey was carried out with more than 300 non-executive directors and senior management who had experience of working with private equity firms.The survey analysed how private equity executives interact with their portfolio companies and revealed the strengths of the private equity approach, as well as the weaknesses, in order to contribute to the development of best practice.

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Africa Brief

Working with Private Equity portfolio companies: A survey











In mid-2012, KPMG and Directorbank commissioned independent research consultancy Private Equity Research Limited to undertake a comprehensive survey of more than 300 non-executive directors and senior management who had experience of working with private equity firms.The purpose was to look in depth at how private equity executives interact with their portfolio companies and reveal the strengths of the private equity approach, as well as the weaknesses.

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