Adesuwa Okunbo-Rhodes, the Managing Partner of Aruwa Capital Management, revealed on the Nigerian Audacity podcast that she landed her first job in investment banking at 18 with Lehman Brothers. This experience laid the foundation for her career in private equity and impact investing. Okunbo-Rhodes, who went viral two weeks ago following her interview with a popular US-based content creator, said she later joined J.P. Morgan at 20 before moving into private equity.
She explained that her experience investing in Africa exposed her to the concept of combining financial returns with social impact. When she saw that intersection between profit and purpose, she said, 'I wanted to do something like this back in Nigeria where I could use my finance knowledge and also improve people's lives at the same time.' Her return to Nigeria in 2014 helped her identify major funding gaps facing small and medium-sized enterprises and women-owned businesses.
Okunbo-Rhodes estimated the growth equity gap at about $150bn for Nigeria and Ghana alone. 'There was less than two per cent of capital going to female entrepreneurs. That didn’t make sense to me because Africa has four times the rate of female entrepreneurship than Europe,' she said. All these discoveries inspired her to buy out her former employers in 2019 and establish Aruwa Capital, a private equity firm focused on women-led and women-focused SMEs.
She deliberately started with a $20m fund instead of pursuing a larger fundraising target. 'Instead of raising $100m, I said let’s raise $20m first, build a track record and prove the model.' The strategy had paid off, with the company now managing $80m across two funds. Okunbo-Rhodes advised entrepreneurs seeking investment, saying investors look beyond business ideas. 'We’re investing in people. We want founders who can clearly articulate the problem they’re solving, demonstrate resilience, have good governance structures and show adaptability.'
'Today, to the glory of God, what started as a $20m first fund, we’re now at $80m under management across two funds. We’ve invested in 16 companies so far, and we’re continuing to showcase that if you invest in SMEs, you’re able to uncover a lot of hidden opportunities that have been overlooked and underserved. And if you invest in women, you’re also able to uncover what we think is one of the best asset classes left in the alternative investments industry.'
Okunbo-Rhodes also noted that Aruwa Capital supports portfolio companies beyond financing by helping them strengthen governance, recruit financial professionals and improve operational structures. 'We don’t just invest with money. We help companies build stronger finance functions, governance structures and strategies because capital alone is not enough.'
Aruwa Capital’s focus on women-led SMEs is significant, considering that women entrepreneurs are significantly underserved in Africa. Okunbo-Rhodes’ experience investing in Africa and her return to Nigeria have given her a unique perspective on the funding gaps facing small businesses and women-owned businesses. Her success in establishing Aruwa Capital is a testament to her entrepreneurial spirit and commitment to impact investing.