Actis to exit Nigerian pension fund administrator

Actis has received regulatory approval to exit its investment in Sigma Pensions, a leading Nigerian pension fund administrator, to First Ally Asset Management (a Lagos-headquartered asset manager) and First Guarantee Pensions Limited (a subsidiary of Access Holdings Plc).

Sigma is a tier one pension fund administrator with contributors across the private, federal and state sectors and a pan-Nigerian branch network. Actis’ partnership with the organisation dates back to 2015, when a majority stake in the company was acquired from the founder, Umaru Modibbo, who has continued to hold a minority stake in the business.

Over the last six years, Actis has worked with Sigma to implement a broad range of value creation initiatives, which included:

– Investing in the management team and making several key senior hires including the current CEO, Dave Uduanu

– Appointing a chief investment officer and a fixed income specialist, which has facilitated an optimisation of Sigma’s bond portfolio and improved returns from Sigma funds

– Appointing a chief technology officer to drive digital transformation, operational efficiencies, and business model optimisation

– Improving risk management and corporate governance by reconstituting the board and recruiting two non-executive directors with extensive financial services experience

– Refreshing and extending the brand to deepen penetration both geographically and demographically

– Restructuring, expanding, and investing in Sigma’s sales and marketing function to drive revenue growth

– Embedding the highest standards of business conduct, which has included the implementation of policies and guidance relating to anti-bribery and corruption for the industry.

Natalie Kolbe, non-executive director for Actis commented, “Sigma has transformed during the course of our partnership, and we are delighted that Access Bank, as one of Nigeria’s largest banks with a large distribution platform, is set to support the company across its next phase of growth. The market Sigma operates in is ripe for consolidation and I have no doubt that with the dedicated backing of Access Bank, they will go from strength to strength.”

Folaseto Akin-Olugbade, non-executive director for Actis added, “Since 2015, we have supported Sigma as it overhauled its corporate governance, customer services, operations and executive leadership. Today, Sigma is a stronger organisation, something that is reflected in its investment returns and operational performance. We wish the company every success in its partnership with Access.”

David Uduanu, CEO of Sigma Pensions commented, “Together, we have grown Sigma into a leading operator, with top quartile returns, for its satisfied savers. This would not have been possible without Actis’ assistance embedding best-in-class governance standards, revamping our funds and their respective portfolios, as well as fine-tuning our sales, marketing, and compliance functions. Today, Sigma is recognised as a solid platform in a sector ripe for consolidation – our future is bright and we’re grateful for Actis’ partnership.”