Adesuwa Okunbo-Rhodes, Managing Partner of Aruwa Capital Management, has revealed that she began her career in investment banking at the age of 18 with Lehman Brothers, describing the experience as the foundation for her journey into private equity and impact investing.

Speaking on the Nigerian Audacity podcast published on YouTube on Tuesday, Okunbo-Rhodes said she later joined J.P. Morgan at the age of 20 before transitioning into private equity, where she discovered the potential of investing in African businesses while delivering social impact.

She explained that her experience exposed her to the idea of combining financial returns with positive societal outcomes, inspiring her to return to Nigeria and apply her expertise to businesses capable of improving livelihoods.

Okunbo-Rhodes said that after relocating to Nigeria in 2014, she identified a significant financing gap affecting small and medium-sized enterprises (SMEs), particularly businesses seeking between $1 million and $3 million in growth capital.

According to her, many private equity firms considered such businesses too small for investment, while commercial banks often required collateral that many entrepreneurs could not provide. She estimated the growth equity funding gap for Nigeria and Ghana at about $150 billion.

She also highlighted the limited access to capital for women entrepreneurs despite Africa recording one of the highest rates of female entrepreneurship globally, noting that less than two per cent of investment capital was directed toward female-led businesses.

The investor said these challenges motivated her to acquire her former employers’ interests in 2019 and establish Aruwa Capital Management, with a focus on supporting women-led and women-focused SMEs.

Rather than pursuing a larger fundraising target, she said the firm launched with a $20 million fund to build credibility and demonstrate the viability of its investment model.

Okunbo-Rhodes disclosed that the strategy has since yielded results, with Aruwa Capital now managing $80 million across two investment funds and investing in 16 companies.

She said the firm’s experience has shown that investing in SMEs and women-led businesses can unlock significant opportunities that are often overlooked by traditional investors.

Offering advice to entrepreneurs seeking investment, Okunbo-Rhodes said investors place as much emphasis on founders as they do on business ideas, looking for resilience, strong governance, adaptability and a clear understanding of the problems their businesses seek to solve.

She added that Aruwa Capital provides portfolio companies with support beyond financing by strengthening governance systems, improving financial management and helping businesses build sustainable operational structures.

(Photo Credit: Punch Newspapers)