APIP II acquires 49% stake in Chocolate City Lounge (Nigeria)


By Staff Writer | Africa Global Funds December 11, 2017

Àrgentil Capital Partners has acquired a 49% stake in Chocolate City Lounge, a Nigerian based restaurant and lounge company.

Àrgentil will also provide Chocolate City Lounge with debt funding.

The investment is being done via the Àrgentil Principal Investment Portfolio II (APIP II), an evergreen SME vehicle which invests equity and debt in Nigerian companies.

The Investor aims to support SMEs, many of which will otherwise struggle to secure financing from the banks.

It is estimated that over 85% of bank lending in the country goes to institutions requiring over NGN1bn ($2.78m) in debt financing, leaving many SMEs starved of funding.

APIP II is currently being backed by a number of commercial institutions and family offices that supported the previous APIP I vehicle.

This is APIP II’s second investment having previously backed Winchester Farms, a meat and poultry processing company.

Àrgentil’s financing will go mainly into Chocolate City Lounge’s flagship restaurant and lounge located at the Jabi Lake Mall in Abuja, which was developed by Actis.

It will operate under the “CCX” brand name.
Chocolate City Lounge is a subsidiary of Chocolate City Group (CCG) one of the leading media/entertainment companies in Nigeria.

As part of CCG’s ongoing strategic expansion, it is developing an entertainment portfolio/brand to add to its popular music brand.

Chocolate City Lounge plans to roll-out of a chain of restaurant & lounges across key locations in Nigeria over the next five years.

Femi Oladehin, Partner at Àrgentil, led the deal.

Olajide Oyewole LLP a member of DLA Piper Africa provided legal advisory services to Àrgentil.

Àrgentil is currently in the market for its sector focused private equity fund, Àrgentil Energy Investment Fund (AEIF), which will invest in energy transactions in West and Central Africa.

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