ARM Pensions

Today, eighty-nine per cent of working Nigerians are not yet registered for pensions. Pensions not only serve as a safety net for aging Nigerians but can also make a huge impact on the households in which these individuals live – for both children and other family members – supporting education, healthcare and other necessary services. The aim of ARM Pensions, one of the largest fund administrators in Nigeria with approximately $1.8bn in funds under management, is to build understanding and uptake of this essential service.

The company provides pensions and retirement savings accounts to three million Nigerians, of which one million are low-income or emerging consumers. Clients are served through 59 locations across all 36 states of  Nigeria, with dedicated mobile offices reaching consumers in the most remote areas, and innovative digital channels ensuring swift access to accounts and assistance. The LeapFrog, ARM Pensions partnership began in June 2018. The investment is a continuation of LeapFrog’s focus on pensions in the West African market, following its successful exit from Ghana’s Petra Trust to Capital Alliance Private Equity IV Limited, a fund managed by African Capital Alliance, a pan-African investment firm in February 2018. LeapFrog worked closely with the Petra Trust team to grow the business to become the largest independent pensions provider in Ghana, achieving 76% GAGR over the period of LeapFrog’s investment. The investment also builds on LeapFrog’s partnership with ARM Group following a 2012 co-investment into what is now ARM Life, a high-growth insurer.

Karima Ola, Partner LeapFrog Investments, commented: “ARM Pensions is a well-established first-class pension fund administrator with an impressive track-record of both profitability and growth. Our team brings significant operational skills to bear on the development of ARM Pensions’ market presence. We have identified valuable opportunities to support the company’s digital strategy, to facilitate partnerships and to increase the firm’s brand awareness in ways that further strengthen customer retention and acquisition. LeapFrog sees the partnership with ARM Pensions, and the shared growth agenda, as capable of delivering large and measurable impact for Nigeria’s people.” Founded in 2005, ARM Pensions is one of the first seven Pension Fund Administrators (PFA) to be granted a license by the National Pension Commission. The company is majority owned by Asset and Resource Management (ARM) Group, Nigeria’s largest and most respected non-bank financial institution, and the country’s largest independent asset manager.

Petra Trust

Ghana’s recently liberalised pensions industry is one of the fastest growing in the world. LeapFrog’s investment in 2014 was predicated on the shifting financial services landscape of Ghana – at the time of investment, only 19 percent of the population had ever used a formal savings product. Investing in Petra Trust was a recognition of the market potential as much as it was a vote of confidence in Petra’s dynamic leadership team.

The Petra team has a long shared history: Co-founders Kofi Fynn and Chris Hammond, and Head of Operations Helena Poku were school friends before studying in the US, at Harvard and MIT. Later they returned home to Ghana to start Petra, inspired by the social need for pensions, and the market opportunity this represented.

Launched in 2011, Petra was the first trustee approved and licensed by Ghana’s National Pensions Regulatory Authority in 2012. Today Petra is the largest independent pensions trustee in Ghana, and one of the two largest by assets under management.

Petra has benefited from LeapFrog’s support in consumer research, marketing, governance and strategy and IT infrastructure.

Kofi Fynn, Managing Director, said, “In partnership with LeapFrog, we have made key changes to the business, including introducing a world-class governance structure, diversifying our product offering, and opening up access to high quality, affordable savings for Ghanaians. Our work together has set the foundations for the provision of financial security for millions of emerging consumers in Ghana.”

The LeapFrog and Petra team rapidly grew the business into the leading independent pensions trustee in Ghana with over 1.4bn GHS (USD 310m) in assets under management (AUM). The company has achieved average annual revenue growth of 76 percent across the period of investment. LeapFrog successfully exited in 2018.