ARM Launches ₦200 Billion Private Debt Fund to Bridge SME Financing Gap, Expand Institutional Credit in Nigeria

Mary Nnah

ARM Investment Managers, a leading African alternative investment manager, has announced the launch of Series I of the ARM Private Debt Fund, a ₦200 billion private credit programme designed to provide structured, long-term financing to scalable small and medium-sized enterprises (SMEs) while delivering stable, risk-adjusted returns to institutional and qualified investors.

The Fund is structured as a closed-ended private credit vehicle and will deploy capital primarily through senior secured term loans, revolving credit facilities, and selective subordinated debt to high-quality SMEs across key sectors of the Nigerian and Sub-Saharan African economy. Series I of the programme is targeting an initial raise of ₦25 billion, with a broader ₦200 billion shelf program registered under applicable regulatory frameworks.

The launch comes at a critical time for Nigeria’s economy, as SMEs, despite accounting for nearly half of GDP and over 80% of employment, continue to face significant challenges accessing long-term, non-bank financing.

Regulatory constraints, elevated interest rates, and balance-sheet limitations have reduced the capacity of traditional banks to meet the growing credit needs of this segment, creating a structural financing gap that private credit is well positioned to address.

“Private credit plays a vital role in modern financial systems by providing disciplined, patient capital to businesses that drive real economic activity,” said Deji Opeola, CEO of the ARM Private Debt Fund. “This Fund has been deliberately structured to combine strong governance, rigorous credit underwriting, and active portfolio management. Our objective is to protect investor capital while supporting the growth of viable SMEs that create jobs, deepen local value chains, and contribute meaningfully to economic development.”

The ARM Private Debt Fund is targeted at qualified institutional investors, development finance institutions, family offices, and high-net-worth investors seeking exposure to private credit as a portfolio diversifier.

The Fund aims to deliver returns of approximately 300bps above the prevailing yield on the Federal Government of Nigeria (FGN) 10-year bond, subject to market conditions. Some of the key features of the Fund include a strong bias toward senior secured lending, with a minimum of 80% of the portfolio invested in asset-backed, covenant-protected facilities.

It also has conservative leverage, strict obligor and sector concentration limits, and active monitoring, with independent governance structures, including an Investment Committee and Advisory Board. The Fund optimises its portfolio diversification across sectors and geographies, with a long-term investment horizon aligned with SME growth cycles.
Investors interested in participating in the Fund are encouraged to contact Onyinyechi.Iwuoha@arm-altfunds.com for further information on subscription terms and eligibility requirements.

In addition to investor participation, ARM is also inviting eligible SMEs and mid-sized businesses seeking structured growth capital to apply for financing under the Fund. The Fund will focus on businesses with proven operating track records and stable or growing cash flows, minimum profitability thresholds of N500m, strong governance and management structures, and clear use-of-funds for working capital expansion, asset acquisition, or growth initiatives.

Priority sectors include manufacturing, trade and distribution, agribusiness value chains (excluding primary agriculture), services, logistics, and technology-enabled businesses, among others. Eligible SMEs seeking financing are encouraged to submit expressions of interest to Onyinyechi.Iwuoha@arm-altfunds.com.

The ARM Private Debt Fund builds on ARM’s broader alternative investment platform, which includes infrastructure, real estate, trade finance, and sector-focused funds. The Fund is domiciled in Mauritius and structured as a multi-currency vehicle, enabling deployment of both naira and hard-currency capital across Sub-Saharan Africa over time. By combining global private credit best practices with deep local market expertise, ARM aims to contribute to the development of a more resilient and diversified credit ecosystem, one that supports enterprise growth while maintaining financial discipline.

“This Fund is not a one-off product,” Opeola added. “It is the foundation of a long-term private credit platform that we believe will play an important role in financing Africa’s next phase of growth.”

ARM Investment Managers is a leading African investment management firm with over three decades of experience across traditional and alternative asset classes. ARM manages funds for retail and institutional investors and is focused on delivering sustainable, long-term value through disciplined investment strategies and strong governance.