The growing appetite of African pension funds for private equity is gaining momentum, with three Nigerian pension managers joining international development finance institutions and other investors in a US$76 million first close of CardinalStone Capital Advisers’ second growth fund.

The West Africa-focused private equity manager is targeting approximately US$120 million for its CCA Growth Fund II (CCAGF II), which will invest in high-growth small and medium-sized enterprises across Nigeria, Ghana, Côte d’Ivoire and Senegal.

The transaction points to a gradual shift in how Africa’s long-term savings are being deployed, with pension capital increasingly supporting productive businesses and long-term economic growth beyond traditional fixed-income investments.

Investors in the first close include the International Finance Corporation (IFC), British International Investment (BII), SCM Capital, the Dutch Good Growth Fund, CardinalStone Partners, and three Nigerian pension managers: Stanbic IBTC Pension Managers, Access ARM Pensions, and FCMB Pensions.

The fund is expected to invest across sectors, including agribusiness, industrials, consumer goods and services, healthcare, education, and financial services.

IFC Director for Equity, Funds, and Venture Capital Farid Fezoua said SMEs remain critical to job creation in West Africa but continue to face limited access to long-term capital.

“This investment is about closing that gap, connecting high-potential businesses with the capital and support they need to scale, create jobs, and drive economic opportunity across the region,” he said.

A Ghanaian perspective is also represented through Shirley Somuah, a partner at CardinalStone Capital Advisers (CCA) and a member of the Ghana Venture Capital and Private Equity Association (GVCA).

Ghana’s Pension Opportunity

The development has implications for Ghana, where attention is increasingly focused on how pension savings can be channelled into productive investments while protecting contributors’ interests.

Ghana’s regulatory framework allows pension funds to invest in alternative assets, including private equity, subject to conditions set by the National Pensions Regulatory Authority (NPRA). The Securities and Exchange Commission (SEC) also regulates private equity and venture capital funds and their managers, with requirements covering licensing, governance, valuation, reporting and investor protection.

Industry stakeholders, however, say regulatory permission must be matched with greater market stability, co-investment opportunities, technical capacity, and sustained advocacy.

Chief Executive Officer of the Ghana Venture Capital and Private Equity Association (GVCA), Amma Gyampo, said the industry welcomes the growing participation of pension funds in private markets.

“With local institutions like the pension funds that recently backed CardinalStone and Ventures Platform and universities like Ashesi making multiple investments in alternative assets, GVCA remains committed to doubling down on our capacity building and education activities in the market,” she said.

For Ghana, the challenge is therefore moving from regulatory permission to meaningful participation. This requires stronger engagement with pension fund trustees, greater education on alternative investments, and a stronger pipeline of investment-ready businesses.

Many SMEs still face weaknesses in financial reporting, corporate governance, management systems, market research and data-backed business planning, making them less attractive to institutional investors.

Ghana also needs deeper exit opportunities through strategic sales, secondary transactions, and listings, alongside stronger and more liquid capital markets.

Private equity investing further requires specialised skills in valuation, due diligence, portfolio management, corporate governance, and exit planning. Building these capabilities within pension funds will be critical to ensuring that alternative investments are assessed, managed, and monitored effectively.

Connecting Pension Capital to the Real Economy

The opportunity for private equity and venture capital extends beyond fundraising. Effectively deployed capital can help businesses expand production, enter new markets, improve productivity, adopt technology, and create jobs.

Greater collaboration between pension funds and development finance institutions could also help attract institutional capital and support businesses over longer investment horizons.

The CardinalStone transaction demonstrates the potential of bringing international and African institutional investors together to finance businesses in markets where long-term growth capital remains limited.

For Ghana, the priority should be to create the conditions that make private-market investment commercially attractive, transparent, and scalable.

The US$76 million first close is therefore more than a fundraising milestone. It highlights the potential of Africa’s institutional capital to support businesses, deepen private capital markets, and contribute to long-term economic growth.