Expert offers fresh insights into how PE funding buoys growth of businesses

At a time like this, in the Nigerian economy, when a good number of start-ups and entrepreneurs do not have the requisite capital and cannot access traditional financing sources such as bank loans to see ideas to fruition, private equity funding is the way to go, an expert has said.

Fabian Ajogwu, a professor of corporate governance at the Lagos Business School (LBS), who gave this hint, noted that this inability to access traditional financing sources, which also includes issuance of public stock, has been a fundamental factor impeding the growth of businesses.

Ajogwu, whose views are contained in his new book, ‘The Law & Practice of Private Equity’, which is billed for unveiling on Wednesday, October 21, pointed out that private equity is a crucial alternative to bridging the funding gap in many developing countries in Africa due to the lack of access to capital or lack of adequately developed routes to obtaining funding.

“The Law & Practice of Private Equity examines the concept of private equity and highlights its significance as an alternative financing model that helps to bridge the funding gap for businesses and companies,” he explained in a statement in Lagos at the weekend.

He cited a research which shows that private equity investors are attracted to businesses that have the potential to evolve in ways that create value and find traditional financing challenging to arrange.

Ajogwu explained further that the emergence of PE funding as a reliable financing option in emerging markets and the desire to share optimum practical knowledge on a crucial subject inspired the writing of ‘The Law & Practice of Private Equity’.

The book, published by a global leader in law publications, Thomson Reuters, is available in both hardback and e- book versions. It is expected that a wholesome exposition of the subject, as has been made in the book, will contribute significantly to the development and practice of private equity in Nigeria.

It presents a practical approach to private equity investing and deal-making that protects the interests of stakeholders – investors and investees, just as it analyses the relevant legal framework to help those engaging in private equity deals to do so within the provisions of the law and regulatory requirements.

An essential publication for businesses, ‘The Law & Practice of Private Equity’ will benefit entrepreneurs, investors, regulators, financial experts, policymakers, attorneys, lecturers, and students.

It is envisaged that this book will increase knowledge of the subject of private equity and, ultimately, contribute to economic development and prosperity.