Alpha10 Fund Management Limited has said it plans to help micro, small and medium-sized enterprises gain access to regulated sources of funding by supporting them to meet compliance requirements and become investment-ready.
The firm disclosed this in Abuja on Wednesday during the launch of its Alpha10 Halal Fund, a Shari’ah-compliant investment product aimed at expanding ethical investment opportunities and financial inclusion.
Speaking at the event, the Managing Director and Chief Executive Officer of Alpha10 Fund Management Limited, Abigail Utomi, said the company would leverage its advisory and investment banking businesses to help entrepreneurs structure their operations in a way that attracts investment.
“With the way the fund is structured, it addresses that problem because MSMEs can access funding directly or indirectly through the fund,” she said. “Recall that we have an advisory business as well, investment banking and advisory, which helps investors to raise capital and also advises you financially on how to go about it.
“If you need to structure a product to bring your business to market, to put it in a state where it is bankable and investment grade, we could also support you through that business to achieve that.”
Utomi explained that the company was also considering specialised investment vehicles targeted at underserved segments of the economy, including an informal sector fund and a Real Estate Investment Trust.
According to her, the company believes more Nigerians should have access to wealth management products irrespective of their religious beliefs or income levels. “We believe strongly that everybody should be able to access wealth management solutions that meet their needs regardless of their beliefs, faith, and preferences,” she said.
She described the newly launched halal fund as part of efforts to broaden investment options in the market, noting that the product allows participation from as little as N1,000.
She added that the fund was structured as an open-ended investment vehicle, allowing investors to add to their holdings at any time and withdraw funds after a 90-day lock-in period.
Utomi said the company was targeting annual returns within a range of 14.5 to 16 per cent, although returns would depend on the performance of underlying assets and market conditions.
She noted that the fund would invest in Sukuk instruments and other Shari’ah-compliant assets while adopting active portfolio management strategies.
Utomi said investors’ funds would be held by a custodian independent of the fund manager, adding that the product was subject to regulatory oversight by the Securities and Exchange Commission. “UBA is the custodian of our fund, so you can rest assured that your funds are kept in safe hands,” she said.
According to her, the fund manager reports regularly to the SEC and other parties involved in the fund structure, including trustees, providing additional layers of investor protection.
She added that redemption requests are processed within the regulatory timeframe, although the company aims to return funds much faster. Utomi disclosed that Alpha10 currently manages about N3bn across its existing investment funds and aims to grow total assets under management to N50bn within the next five years.
She added that the newly launched halal fund, which commenced with a minimum fund size of N500m, is projected to exceed N10bn over the same period.
Also speaking, Chairman of the Board of Directors of Alpha10 Fund Management Limited, Chibuzo Ekwekwuo, said the company was focused on bridging the gap between providers of capital and businesses in need of financing.
“We need to bridge the gap between those who have the funds and those who need it,” he said. “We also need to be able to bring solutions to people at all levels so that people at all levels would benefit from the financial solutions market.”
Ekwekwuo identified the lack of proper business structure as one of the biggest obstacles preventing MSMEs from accessing regulated funds.
“One of the biggest problems for MSMEs is that you need to structure their businesses and their products in a way to access regulated funds,” he said. “Our advisory division will help SMEs to put themselves in the proper manner to meet compliance requirements and be able to access this fund.”
The board chairman also dismissed the notion that halal investment products were meant exclusively for Muslims.
Earlier, Alpha10’s Regional Head, North, Dr Muhammad Ardo, said the fund was designed to protect investors against inflation by investing in tangible assets and ethical businesses.
He said the company does not engage in speculative investments and instead focuses on assets such as schools, student hostels, warehouses, and other projects that generate real economic value.
He explained that the fund excludes investments in gambling, betting, alcohol, tobacco, and other sectors prohibited under Islamic finance principles.
Independent Non-Executive Director of the company, Mohammed Umar, said the product was expected to support financial inclusion by providing investment opportunities for both small and large investors.
“This product we’re launching today is purely to improve or expand the means by which people can invest their funds,” he said. “It is open for small and large investors in the country.”
Umar urged Nigerians to exercise caution when dealing with investment schemes promising unusually high returns. He added that the company’s investment philosophy centred on funding real assets capable of contributing to economic growth and development rather than speculative ventures.
The Centre for the Promotion of Private Enterprise recently raised concerns about weak credit flows to small businesses despite recent banking sector reforms.
The organisation noted that SMEs play a significant role in Nigeria’s economy, adding that the segment contributes about 50 per cent of Gross Domestic Product and over 80 per cent of employment, yet faces an estimated financing gap of about N48tn.
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