June 15 2018

LeapFrog invests in one of Nigeria’s largest pensions administrators, ARM Pensions

  • ARM Pensions is one of the largest pensions fund administrators in Nigeria, with about $1.8 billion in funds under management and reaching 700,000 people
  • The new investment continues LeapFrog’s success in the West African pensions market, having exited Ghana’s leading independent player, Petra Trust, in February 2018
  • The investment also builds on LeapFrog’s partnership with ARM Group following a 2012 co-investment into what is now ARM Life, a high-growth insurer
  • The pensions market is one of the fastest growing areas of Nigeria’s financial services sector
  • 89% of working class Nigerians do not yet have pensions, and this impact investment will capitalise on the opportunity to expand in a vast and underpenetrated pensions market

London 15 June 2018:

LeapFrog Investments the leading global impact investor in companies that deliver financial services and healthcare for emerging consumers, today announced its investment in ARM Pension Managers (PFA) Limited. The investment in ARM Pensions will tap a rapidly growing pensions market, with a particular focus on deepening reach into the vast group of emerging consumers in Nigeria. This is a continuation of LeapFrog’s success in bringing pensions and financial services to the millions of people in the region who are rising toward the middle class.

ARM Pensions is a high growth company that is one of the largest pensions fund administrator in Nigeria with about $1.8bn in funds under management. Clients are served through 57 locations across all 36 states of Nigeria. The company has mobile offices that reach consumers on the go as well as innovative digital channels ensuring swift access to accounts and assistance. ARM Pensions is well positioned to expand in Nigeria’s underpenetrated pensions market.

Karima Ola, Partner at LeapFrog Investments, commented: “ARM Pensions is a well-established first-class pension fund administrator with an impressive track-record of both profitability and growth. Our team brings significant operational skills to bear on the development of ARM Pensions’ market presence. We have identified valuable opportunities to support the company’s digital strategy, to facilitate partnerships and to increase the firm’s brand awareness in ways that further strengthen customer retention and acquisition.”

In partnership with LeapFrog, ARM Pensions’ management team will drive the firm’s growth in Nigeria’s most attractive financial services market. This investment is a continuation of LeapFrog’s success in the West African pensions market, following its successful exit from Petra Trust in February 2018. LeapFrog worked closely with the Petra Trust team to enhance the business to become the largest independent pensions provider in Ghana, seeing 76% average compound annual revenue growth over the period of LeapFrog’s investment. The financial terms of the new transaction are not disclosed.

Michael Joyce, Investment Director at LeapFrog Investments, commented: “Our impact investment in this outstanding high growth company will enable LeapFrog to contribute to the positive Nigerian growth story, for which pensions are fundamental. Pensions not only serve as a safety net for aging Nigerians, but can also make a huge impact on the households in which these individuals live, reaching both children and other family members – supporting education, healthcare and other essential services. LeapFrog sees the partnership with ARM Pensions, and our shared growth agenda, as capable of delivering large and measurable impact for Nigeria’s people.”

Wale Odutola, Managing Director at ARM Pensions, commented: “We are delighted to partner with the LeapFrog Investments team, who share our vision of opening up access to financial savings for all Nigerians. We look forward to increasing the level of participation in life-enhancing pensions, and solidifying our position as a leader in Nigeria’s pensions market, the most attractive financial services sector in the country.”

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