A New Era for Nollywood: Utica Capital Launches N20bn Venture Capital Fund
Utica Capital Limited has launched a groundbreaking venture capital fund worth N20 billion, aimed at addressing the critical funding gap in Nigeria’s Nollywood industry. The initiative was announced during a press conference held in Lagos on Thursday, marking a significant milestone in the sector’s development.
The fund, structured as a closed-ended venture capital vehicle with a ten-year investment horizon, is designed to target high-growth opportunities across the entire film value chain. This includes production, distribution, streaming, infrastructure, and licensing. The initial tranche of N5 billion has already been made available, signaling the start of a broader strategy to transform the industry.
Dr. Adesegun Akin-Olugbade, Chairman of the Board of Directors of Utica Capital Limited, emphasized the historical significance of this launch. He stated, “For the very first time in Nigeria, and indeed in Africa, the Securities and Exchange Commission has approved a specialised Venture Capital Fund dedicated to the film industry. The Utica Film Fund is, therefore, a pioneer, blazing the trail where finance and creativity intersect.”
Akin-Olugbade highlighted the immense global influence of Nollywood, which he described as more than just entertainment. “Nollywood is a cultural powerhouse, a billion-dollar industry, and one of Nigeria’s greatest exports to the world. Every day, over 35 million people consume Nollywood content. 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.”
He stressed that the Utica Film Fund aims to professionalize investment in the sector by offering a structured, SEC-approved, and professionally managed vehicle. “This is not charity; this is smart investing, backed by rigorous due diligence, strong governance, and a diversified portfolio strategy,” he added.
Mr. Ola Belgore, Managing Director of Utica Capital Limited, reiterated the depth of the underfunding challenge that the U-Film seeks to address. “Yet, for all its scale and influence, Nollywood remains deeply underfunded. More than 95 per cent of its financing still comes from personal savings and informal loans. Institutional capital is almost absent, despite clear and consistent proof of strong returns. That is the gap we are here to close.”
Belgore outlined the fund’s investment philosophy, which rests on three key principles of diversification:
- Diversified Portfolio: U-Film will deploy capital across about 40 carefully selected projects, spanning feature films, distribution networks, digital platforms, merchandising, and creative infrastructure. Geographic exposure will focus 70 per cent on Nigeria, 20 per cent across the African continent, and 10 per cent globally.
- Strong Governance: The fund is supported by independent custodians, trustees, a valuer, and auditors. Oversight will be maintained by a highly experienced Investment Committee. Alongside them is a powerful Advisory Committee made up of iconic Nollywood figures, including Richard Mofe-Damijo, Omoni Oboli, Femi Adebayo, Kachi Offiah, and Sani Muazu. This fusion of financial expertise and industry experience ensures balanced, well-informed decision-making.
- Attractive Returns: U-Film targets an internal rate of return of 58.2 per cent over the life of the fund. The projected multiple on invested capital stands 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.
The minimum investment is set at N10m for high-net-worth individuals and N100m for institutional investors. Investors can choose to subscribe in either Naira or U.S. dollars.
Belgore urged potential participants to view the fund as an opportunity for both financial yield and strategic impact: “To our institutional partners, pension funds, insurance firms, asset managers, and corporate investors, this is an opportunity to access a high-growth, alternative asset class that combines structure, impact, and yield.”
During the launch, John Briggs, Head of the Lagos Zonal Office of the Securities and Exchange Commission, praised the fund as innovative but raised concerns about potential conflicts of interest. He advised the fund managers to pay close attention to these issues.
Other stakeholders present at the event included Custodian-FirstBank, Solicitors-ALP NG & Co, Registrars-Cardinalstone Registrars, Trustees-Cardinalstone, and STL Trustees, among others.
