Infrastructure Fund

Overview of the CardinalStone Umbrella Infrastructure Fund

  • The CardinalStone Umbrella Infrastructure Fund (the “Fund”) is a ₦500 billion close-ended investment programme designed to channel capital into Nigeria’s most critical infrastructure sectors. This SEC-regulated platform allows qualified institutional investors and high-net-worth individuals to participate in high-quality, revenue-generating infrastructure projects that offer a combination of sustainable income, capital preservation, and long-term growth potential.

  • The Fund provides a structured approach to investing in infrastructure, enabling investors to access professionally managed portfolios while contributing to Nigeria’s economic and social development.

Fund Structure

The Fund is structured as an umbrella fund, comprising two separate and distinct sub-funds, each with its unique investment focus and objectives:

  • CardinalStone Infrastructure Debt Fund (Debt Sub-fund) which invests debt instruments in infrastructure assets
  • CardinalStone Infrastructure Equity Fund (Equity Sub-fund) which invests equity instruments in infrastructure assets

Unique Proposition of the CardinalStone Umbrella Infrastructure Fund

1

1.

Umbrella Fund structure providing for flexibility of investing debt and equity instruments in infrastructure assets. First alternative asset manager to utilise this structure in Nigerian capital market

2

2.

A focus on key infrastructure sectors including power & renewables, gas infrastructure, telecoms among others, which will drive the growth of the Nigerian economy

3

3.

The Fund Manager will incorporate ESG in its decision-making process and has developed its ESG policy and framework document from the commencement of the Fund

4

4.

Implementation of commitment-style capital call model to limit cash drag on investor returns, provide investors with true infrastructure returns and reduce total Fund expenses

5

5.

The Fund Manager has defined its maximum Investment Period of up to 30 months (initial 18 plus additional 12) for each series which will help align the interests of the Fund Manager with the investor

Target sectors for Investments

Power & Renewables

- Captive power (gas)
- Renewable energy – C&I
- Embedded generation
- IPPs serving state governments and other institutions
- Mini grid (interconnected & isolated)
- Distribution & transmission
- Grid-based generation

Gas Infrastructure

Storage, processing & transportation for natural gas, CNG, LNG and LPG

Telecoms & Digital Infrastructure

- Data centres
- Fibre optic cables
- Broadband networks
- Mobile networks

Social Infrastructure

- Healthcare facilities
- Student accommodation - Education (schools, training facilities)

Transport & Logistics

- Toll roads
- Terminals and logistics parks
- Cargo handling & cold chain logistics
- Electric vehicle infrastructure
- Railways
- Maritime
- Aviation

Utilities

- Water supply for domestic, commercial or industrial use
- Dams and irrigation systems
- Municipal and industrial waste management

Target Investors

The Fund is open to:

  • Qualified Institutional Investors: Pension funds, asset managers, multilateral and international financing institutions, and insurance companies
  • High-Net-Worth Individuals

The Debt Sub-fund

The CardinalStone Infrastructure Fund (or the Debt Sub-fund) will seek to invest debt instruments in projects where there is a clear path to immediate (or gradual), consistent and predictable cash flows. Such projects will have one or more of the following characteristics:

  1. Long-term off-take arrangements with a creditworthy entity;
  2. Concession or license obtained for development and management of a project or facility;
  3. Brownfield or shovel-ready greenfield projects with a significant portion of the development equity already invested; and
  4. Expansion project for established business operating in a mature sector/sub-sector with a history of consistent cash flows.

Benefits for Investors

Professional Parties