making money through finance houses in nigeria
TRANSCRIPT
iKnowAfrica Ventures Limited Making Money Through Finance Houses
Business Summary
Preamble
Finance Houses specialize in financing short term income bearing projects at monthly interest rates between 5%
and 10%
Limited capital bases amidst expertise in credit processing often results in the placing of sufficient securities before
deciding to finance any project by finance houses.
Finance houses are wiling to share their income as long as it increases their capital base. This creates investment
opportunities to those willing to co-fund projects (at monthly return on investments between 3.5% to 8.5%
How it Works
To deal with finance houses, you will require the services of a financial advisory firm such as iKnowAfrica, who will
act as your fund manager.
As your fund manager, iKnowAfrica will review the Credit Appraisal Memorandums (CAM) of projects from Finance
Houses. These documents represent the summary of the projects to be financed as well as all the securities that
have been put in place by the finance house to ensure that their money and yours are repaid as at when due.
By reviewing the CAM of finance houses, iKnowAfrica will provide a second opinion as to whether any particular
project is worth funding or not.
Opportunity
Money can be provided to Finance Houses on the basis of projects that have passed their due diligence and
security conditions.
Finance houses tend to finance projects such as purchase of raw materials (or other working capital needs),
discounting of invoices, consumer loans (particularly for salaried workers in blue chip companies, etc). These sorts of
projects have returns on weekly or monthly basis.
Basically, you can make weekly or monthly returns by relying on the financing and risk-mitigation expertise of
Finance Houses. Your returns can then be further recycled to make even more money.
Ensuring Appropriate Use of Your Money
Finances houses will be expected to contribute 50% of the total money they require into a bank account jointly managed by them and
iKnowAfrica (a “Joint Account”), before yours is transferred for co-funding. This will prevent unnecessary transfer of your money, thus
preventing unneeded bank charges such as COT
In the event that there are other funding parties on contemplated projects, the maximum amount of your money used to co-fund the
projects will be no more than that contributed by the finance house. In this case as with the above, funds from all funders will have to first
be placed into the Joint Account before yours is sent in to complete the total funds required.
iKnowAfrica will ensure that funds in Joint Accounts are transferred directly (and only directly) to the bank accounts of approved projects.
iKnowAfrica will ensure that the bank accounts to receive repayments from projects will be the same Joint Accounts used in transferring
funds to the projects, as must be stated in offer letters from finance houses to project owners.
Upon repayment of capital and interest by projects into Joint Accounts, your share of the capital as well as interest shall be transferred to
your opened bank account.
All co-funding using your money shall be subject to your receipt of all details surrounding the contemplated projects, the funding parties,
and all approval processes; and will also require signed approval by you, without which, no use of your funds will happen as it will result in
breech of contract and resultant legally enforceable penalties to iKnowAfrica (as pre-agreed by you and iKnowAfrica)
Projects owned or managed by any director, senior management (or their families) of finance houses will NOT be approved or be co-
funded by iKnowAfrica. This is to ensure that your funds will only be used to co-fund companies that were objectively selected by finance
houses, and it will be ascertained by reviewing the ownership structures of projects/companies during co-funding considerations.
In order to diversify your investment portfolio, iKnowAfrica shall utilize no more than 10% of your funds to co-fund any particular project.
To further diversify your investment portfolio, iKnowAfrica shall utilize no more than 25% of your funds to co-fund with any particular finance
house.
Setting Up
Setting Up
The process begins with the review and signing a notarized agreement between you and iKnowAfrica, specifying
all processes and obligations of the parties (most of which are mentioned in this document).
A bank account will be opened for you in either your name; or in the name of a company you own, with funds
(your investment) transferred into the account
iKnowAfrica will operate the opened account by appointing several of its directors as mandatory signatories
Monthly bank statements will be provided to you as well as monthly summaries of your investment e.g. cash in
bank, co-funded projects, expected returns, etc.
iKnowAfrica partners only with the best performing finance houses. As finance houses are regulated and
mandated by CBN to have audited account statements every year, iKnowAfrica is able to assess and to work
with only those who know how to select successful projects.
In effecting the above, iKnowAfrica selects finance houses who have had net income growths over the last 3
years of operations, and whose average bad debt to total loan ratio over the same period has been 5% or less.
Finance House
Selection
Co-Funding Flow
Your bank account is set
up
iKnowAfrica approaches
Finance Houses for
details of projects they
intend to finance
iKnowAfrica rejects or
approves projects based
on risk profile, expected
returns, ownership
profile, securities placed
by Finance Houses. etc.
iKnowAfrica shares
project details with you
and requests signed
approval for co-funding
Finance Houses and all
involved funders
contribute their share of
capital into a Joint
Account
iKnowAfrica transfers
your share of the capital
into the Joint Account
iKnowAfrica and
Finance House transfer
the completed capital
to Project from the Joint
Account
Project Owners receive
their funds
Project Owners repay
the capital and required
interest into the Joint
Account
Your share of capital
and earned interest is
transferred to your bank
account managed by
iKnowAfrica
Your earned interest is
transferred to any bank
account or reinvested as
specified by you
One Year Profitability
Reinvesting
your monthly
income will
lead to returns
of about 24% or
more.
Whereas taking
out monthly
profits will lead
to a loss since
capital will be
eroded rather
than gained
from payment
of fund
management
fees
Description Figures Formular Notes
Managed Funds A 5,000,000 - There is no minimum amount of money required. You may invest
according to your liquidity
Average Monthly Interest Earned B 5% - Some projects attract monthly interest as high as 10% while others
may attract as low as 2.5%
Average Monthly Interest C 250,000 C = A x B This is the total monthly income from co-financing a project
Bank Charges and COT % D 0.1% - Bank charges are often lower in reality
Bank Charges & COT Expenses E 250 E = C x D
Fund Mgt Fee % F 30.0% - Fund Management Fee to iKnowAfrica from income
Fund Mgt Fee Expenses G 75,000 G = C x F
Overhead Contribution % H 5% - Contribution to support services e.g. accounting, debt recovery,
administration, etc
Overhead Contribution Expenses I 12,500 I = C x H
Average Monthly Income J 162,250 J = C - E - G - I Total income after all expenses are deducted. Could be received
monthly or reinvested
Average Monthly Return K 3.2% K = J ÷ A
Expected Annual Income L 1,947,000 L = J x 12 Total income received during the year on Managed Funds
Expected Annual Returns M 39% M = L ÷A Annual returns on your money (e.g. N390,000 on every N1,000,000)
The End
Appendix – Team Profile
B.A. Psychology and Philosophy, (3.95/4.00 GPA, First Class, Honours) Memorial University of Newfoundland,
Canada
Master in Business Administration, Lagos Business School, Pan Atlantic University
Igho-Osagie Imuetinyan is the Managing Director of iKnowAfrica Ventures Limited, where he provides financial
analysis and advisory, business development, and fundraising to businesses and to entrepreneurs. Over the last
seven (7) years, Mr. Igho-Osagie has been consistent in providing such business support services to diverse
industries.
Under a strategic partnership with Lighthouse Financial Services Limited, He acted as Group Head of Financial
Advisory Services, where he raised capital (equity, debt, trade finance, and debenture stocks) from local and
international sources that included finance houses, private equity, venture capital, high net-worth individuals,
financial institutions, public intervention funds, and grant providers.
Mr. Igho-Osagie currently focuses on raising money for projects through Private Equity, High Networth Individuals,
and international capital raising partners with access to institutional funders. He also engaged in private fund
management for individuals looking to earn higher than average returns on their money.
The mission of Mr. Igho-Osagie is to identify with the success stories of the future, by being part of their journey
now – via financial advisory, fundraising or fund management. His vision is to ultimately grow and lead the
largest private indigenous fund managing company in Nigeria with significant presence in all African States.
Imuetinyan Igho-Osagie
[email protected] +234 802 234 3096 +234 806 663 7138
Appendix – Team Profile
BSc Chemical Engineering, University of Lagos
CFA Charterholder
Mr. Osadiaye is a director of iKnowAfrica Ventures Limited, where he provides fundraising oversight and is
specifically involved with this aspect of the company’s operations in in the East African region.
Uwadiae is an equity analyst with about a decade’s worth of professional experience, and has developed
strong competencies in portfolio management, financial modeling, equity and fixed income investments,
strategic planning, performance analysis and global commodity markets.
Uwadiae currently works with one of Nigeria’s leading merchant banking and asset management institutions as
a Vice President, Equity Research, where he is responsible for the communication of investment
recommendations across various sectors to clients and prospective clients. To achieve this, he exercises
diligence, independence and thoroughness in analysing investment opportunities.
In the course of his career, Uwadiae has been responsible for investment and business advisory to senior leaders
in the management of funds upwards of US$5billion. These competencies have adequately prepared him for
strategic and leadership roles within the Finance function. Additionally, he is an author of several financial
publications and a part-time lecturer.
Mr. Osadiaye looks forward to a future where the vast majority of large Nigerian and African projects are
financed by indigenous funds and managed by indigenous expertise.
Uwadiae Osadiaye
+234 703 305 7541 +234 818 770 9464
Appendix – Team Profile
B.Sc., Accounting, Missouri Southern State University, USA
MBA Finance, Business, University of Pennsylvania, Philadelphia, USA
Mr. Egomwan is a director of iKnowAfrica Ventures Limited, where he provides investment advisory and
fundraising oversight for Northern African markets.
Odemwingie began his career with Walmart at its District Office in Missouri, as an accountant. Since then, Mr.
Egonmwan has developed proficiency in reviewing and analyzing investment term sheets, as well as preparing
and analyzing financial statements for accuracy and for compliance with Generally Accepted Accounting
Principles (GAAP). He executed these functions as a Global Consolidation Manager in Uber Technologies
Incorporated in San Francisco, and currently does same with Twilo Incorporated in the same city.
Prior to the above, Mr. Egonmwan had been a Senior Accountant with InPowered Incorporated (Formerly
NetShelter), with Universal Lumpers Incorporated, and with Bala Golf Club. In these companies, Odemwingie
was engaged with, and oversaw several, aspects of their corporate accounting.
Odemwingie maximizes his experiences in large incorporations and well capitalized technology start-ups by
investing smartly (either by himself or through syndicate groups) in the equities of public and private companies.
His markets of investment include the United States of America, and English speaking West African economies
(particularly Nigeria and Ghana). His current shareholding portfolio in public companies in the United States has
a market value of about USD800,000.
Though based in the United States, Odemwingie actively searches for African opportunities that are able to
provide returns that exceed the average in the United States.
Odemwingie Efosa Egomwan
[email protected] +1 816 916 8083
Appendix – Team Profile
Marketing Strategy. S C Johnson School of Management, Cornell University, USA
Strategic Management and Innovation. Copenhagen Business School, Denmark
Masters in Health Planning and Management (4.68/5.00 GPA – distinction). Institute of Public Administration -
University if Benin, Nigeria
Balanced Scorecard Professional. Balanced Scorecard Institute, George Washington University, USA
British Project Professional. Project Management College, UK
BSc Microbiology – University of Benin, Nigeria
Mr. Eweka is a director of iKnowAfrica Ventures Limited, where he provides strategic oversight and is involved
with fundraising activities of the company in the Southern African region.
Osayi is a multidisciplinary professional with over eight years of work experience across several industries in the
private and public sector. He is an experienced market development strategy specialist with a demonstrated
history of achievement, working in the pharmaceutical, FMCG, medical devices and agriculture industry.
He is currently Market Development Manager for JNC International limited a healthcare solutions and medical
device company registered in Nigeria. There, Osayi helps the company develop and implement business
incubation for new business areas and market penetration for existing areas. Supporting the executive director,
Osayi leads a cross functional team for the company’s market expansion across West Africa.
In line with his personal motivation to help achieve access to better healthcare and overall wellbeing in Africa,
Osayi is now working on several entrepreneurial ventures in Nigeria. He is also forming alliance with other young
vibrant entrepreneurs to help address fund and business strategy limitations common to young promising ideas
and startups across Africa.
Osayi Ikponmwosa Eweka
+234 809 867 2943 +234 805 584 4192
Appendix – Team Profile
B.A. Economics Education (Double Honours), Delta State University, Abraka, Delta State
Mr. Oseji is a director of iKnowAfrica Ventures Limited, where he provides overall operational oversight, is
involved with fundraising activities of the company in the West African region, and provides critical insight
on banking norms, transactions, regulations, and opportunities.
Kenneth has over 10 years of experience in the financial services sector, with a career that covers customer
service delivery, operations and trade.
He began his career at Bank PHB PLC, where he worked in every facet of branch operations before moving
onto the trade department. In the trade department, he handled the custom duty collections desk which
covered import and export duty payments and related trade transactions. He continued this role into
Keystone Bank Ltd before taking up another appointment in operations.
Mr. Oseji currently works at Union Bank PLC as an operations head and change agent in the transformation
of the bank.
Kenneth is was a member of JCI (Junior Chambers International) Collegiate chapter of his alma mater and
was the executive vice president in charge of projects.
Kenneth Chuka Oseji
+234 703 922 0768 +234 818 416 9797
Appendix – Team Profile
BSc. Demography and Social Statistics (Second Class Upper), Obafemi Awolowo University
Master in Business Administration, Lagos Business School, Pan Atlantic University
Mr. Adediran is a director of iKnowAfrica Ventures Limited, where he provides business and financial advisory to
the team’s operations. He is specifically involved with the company’s fundraising efforts in the Central African
region.
Adedapo currently works as a Business Planning Analyst at Lafarge Africa Plc. (a member of LafargeHolcim). His
responsibilities span financial analysis, financial modeling, forecasting and budgeting, performance analysis and
management and financial control.
Prior to the above, he worked as a Strategy and Business Development Analyst at Dangote cement Plc. where
he was responsible for evaluating new markets, valuing projects, building and vetting financial models.
He has also worked as consultant with two (2) business advisory firms where he was responsible for business
planning and financial modeling.
Adedapo Adediran
+234 701 583 4547