Alitheia Capital, a private investment firm based in Lagos, Nigeria, has reported that covid-19 has been felt in its investment portfolio with varying degrees of difficulty, depending on the sectors involved.
“The change brought about by covid-19 created growth opportunities for some companies in our portfolio that already had the necessary technological infrastructure to continue reaching suppliers and customers. There were also challenges that required more ingenious solutions,” said Ishmael Tokunboh, co-founder and managing director of the company.
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- For companies in the agribusiness sector and the production of manufactured goods, the firm reports that there have been significant disruptions in the supply chain. This has led to increases in the cost of production and, in some cases, to the shutdown of operations. Containment is also presented as an element of the context with which to adapt.
“In these cases, we were able to work with the companies in our portfolio to rethink their models, find local solutions and strengthen the resilience of their processes and strategies, in order to mitigate future disruptions,” said Ishmael Tokunboh.
Alitheia Capital COVID-19
- The last challenge posed is that of funding. The companies in the private equity firm’s portfolio were at different levels of their cash flow when the pandemic hit.
- The various funds under the management of Alitheia Capital benefit from the support of several institutional investors, such as the Soros Development Fund or the Dutch FMO. The company invests in business projects that are in their early stages, or in the second stage of their progression.
- According to data viewed on S&P Global Ratings’ Capital IQ, 77.7% of its investments are currently in technology or finance.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer