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Sigma Pensions

Securing the future

Region: West Africa, Nigeria Investment date: 2015 Sector: Private Equity Exit date: Deal type: Expansion Status date: Realised

Sigma Pensions (‘Sigma’), is a leading Nigerian Pension Fund Administrator (‘PFA’). Founded in 2004 and headquartered in Abuja, Sigma is one of Nigeria’s first PFAs and has over 650,000 registered customers. Working from 11 offices and 32 service centres, it administers and invests funds on behalf of its customer base, which spans the entire country.

Actis invested $62m for a majority stake in Sigma in November 2015, partnering with Sigma’s founder and Chief Executive Officer, Mr Umaru Modibbo. Actis’ investment in Sigma creates a platform to build further into Nigeria, leveraging a growing consumer demand for financial protection and wellbeing in Nigeria. Sigma is a solid, market-leading brand in an under-penetrated, high growth market, well placed to scale and where Actis can add significant value.

The pensions industry in Nigeria remains significantly under-penetrated since only six million Nigerians have a pension out of a population of c.170 million. Growth is also supported by a robust regulatory system as all companies with more than 15 employees are required to pay a portion of their monthly salary into their pension scheme.

Actis sees tremendous potential in the asset management industry in particular, backing emerging market consumers to secure their future by saving and investing appropriately. Actis has experience in the sector through successful past investments in Alexander Forbes, the largest independent pension fund administrator in South Africa and XP Investimentos, the biggest independent brokerage and asset manager in Brazil.

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Sigma Pensions