July 5, 2013 – Capital Alliance Private Equity III (“CAPE III”), an ACA-managed fund, has realized its equity investment in First Hydrocarbon Nigeria Company Limited (FHN), an indigenous exploration & production company in Nigeria.
FHN was established by UK-listed Afren Plc in direct response to the Nigerian government’s policy to increase indigenous participation in the Nigerian upstream oil and gas sector. In 2010, ACA invested in FHN to support its acquisition of a 45% interest in the OML 26 portfolio of assets from Total, Shell and Agip, as well as to assist in the initial phase of the further development process for the asset. Due to the attractiveness of the OML 26 portfolio of assets, FHN benefited from a significant and diverse investment base and accrued value that enabled CAPE III to successfully exit. ACA’s investment in FHN underscores the advantage of the fund’s strategy to back local champions emerging in the Nigerian Oil & Gas space.
Speaking on ACA’s role during the investment phase, Femi Bajomo, Managing Director of FHN said, “During the course of our partnership, ACA worked with us to execute our strategy and grow the company. The firm has been a valuable partner in delivering FHN’s vision to increase indigenous ownership in the upstream sector of the Nigerian economy. With our increasingly strong positioning, we look forward to what the future holds and thank ACA for their role in our success.”
Cyril Odu, Partner of African Capital Alliance added: “We are delighted to have partnered with FHN and to have played a role in helping the company grow during the tenure of our investment. We have been particularly impressed with the quality and strength of the management team who have a great track record. We are also encouraged by the company’s growth prospects in the Nigerian oil & gas industry, which continues to offer significant opportunities to indigenous players.”
ACA is currently investing out of its third fund (CAPE III), a $400 million private equity fund.