UTICA Capital Limited has unveiled a N20 billion closed-ended venture capital fund aimed at reducing the N200b fund gap in Nigeria’s film industry.
The venture capital is registered with and approved by the Securities and Exchange Commission (SEC) of Nigeria.
At the launching of the initial N5 billion tranche of Series 1 of the Utica Film Fund, the firm’s Chairman, Dr Adesegun Akin-Olugbade stressed that the fund was not released for charity but to strengthen the competitiveness of the country’s film industry at the global level. ‘This is not charity. This is smart investing backed by rigorous due diligence, strong governance and a diversified portfolio strategy.
‘Nollywood is more than entertainment. It is a cultural powerhouse industry and one of Nigeria’s greatest exports to the world. Every day, over 35 million people consume Nollywood content,’ he said.
He lamented that the country’s film industry has suffered underfunding, stressing that the newly launched fund would open doors for investors to invest in the film industry.
‘Our films travel across borders, shape perceptions of Africa and provide livelihoods for millions. Yet, for too long, this industry has been underfunded, relying on personal savings, informal loans and small scale investors.
‘The Utica film fund changes that with a structured, SEC approved, professionally managed vehicle, we are creating a channel for institutional investors and high net worth individuals to participate in the growth of Nollywood and to earn competitive risk adjusted returns while doing so,’ he said.
The firm’s Managing Director, Ola Belgore said with a ten-year investment horizon, the fund is structured to invest in high-growth opportunities across the entire film value chain including production, distribution, streaming, infrastructure, and licensing.
He added that the possible return on investment through this fund stands at a net internal rate of return of 58.2 percent over the life of the fund, with an average gross IRR of 89.4 percent.
‘U-Film offers attractive returns. The projected multiple returns on invested capital stand at approximately 4.5 times over the life of the fund. Importantly, Utica Capital will invest alongside our partners, ensuring our interests remain fully aligned with yours,’ he said.