Kwabena Boamah, Managing Director of Stanbic Investment Management Services (SIMS), has called for a more coordinated and policy-driven approach to pension fund investments in private equity, warning that governance gaps, weak strategy, and limited technical expertise continue to constrain growth in the asset class.
Speaking at the 2026 Annual Conference of the Ghana Venture Capital & Private Equity Association (GVCA), Mr. Boamah addressed stakeholders on the theme: “Pension Fund Co-Investment Success: Internal Processes, Reviewing VC/PE Transactions, Expectations of Trustees and Fund Managers.” His presentation underscored the need for structural reforms to unlock the full potential of pension capital for long-term investments.
While acknowledging gradual progress in the sector, Mr. Boamah noted that adoption remains inconsistent and largely reactive. “It is encouraging that more trustees are exploring private equity and even returning with second commitments,” he said. “However, the pace of adoption remains uneven, and we must transition from passive interest to deliberate, policy-led participation.”
A central concern highlighted in his remarks was the shortage of in-house expertise among pension trustees. According to Mr. Boamah, many boards lack the specialized skills required to rigorously assess private equity transactions, often relying instead on high-level summaries rather than detailed financial models.
“This creates a clear capability gap,” he explained. “When trustees cannot interrogate the assumptions behind the numbers, it naturally limits their confidence and slows decision-making.”
Mr. Boamah also pointed to deficiencies in investment policy frameworks across pension funds. He observed that many institutions approach alternative investments, including private equity, on an opportunistic basis rather than within a defined strategic allocation.
“If there is no clear target allocation for alternatives, funds end up reacting to opportunities instead of executing a coherent investment strategy,” he stated, stressing the importance of structured portfolio planning.
The role of investment committees also came under scrutiny, with Mr. Boamah cautioning against excessive centralization in decision-making. He argued that overly rigid processes can become bottlenecks, delaying or even derailing viable investment opportunities.
“In some cases, a single dissenting voice can stall an otherwise sound transaction,” he noted. “Committees must strike a balance—encouraging robust debate without creating gatekeeping tendencies that hinder progress.”
On the technical front, Mr. Boamah emphasized the need for alignment between trustees and private equity fund managers, particularly in how investments are evaluated. While trustees often focus on individual deal performance, he explained that fund managers prioritize the strength and governance of the General Partner (GP).
“In private equity, you are fundamentally backing the manager, not just the deals,” he said. “Deals can change or fall through, but the GP remains the constant. The real investment thesis should be centred on the manager’s ability to consistently source and execute quality transactions.”
He further highlighted governance as a critical factor, particularly in African markets where institutional frameworks may still be evolving. According to him, weak governance structures can undermine even the most promising investments.
“Strong governance is non-negotiable,” Mr. Boamah stressed. “Investors must ensure they have clear rights and effective oversight mechanisms to safeguard their capital.”
Touching on regulatory constraints, he clarified that current guidelines limit pension fund participation in private equity to either fund-of-funds structures or direct commitments to licensed private equity funds. Co-investment, he noted, is not currently permitted under existing rules.
Despite these challenges, Mr. Boamah expressed optimism about the future of private equity in Ghana, provided stakeholders work collaboratively to build trust and strengthen institutional frameworks.
He underscored the importance of constructive relationships between trustees and fund managers, suggesting that effective due diligence processes should lead to greater confidence, rather than prolonged hesitation.
“When fund managers undertake rigorous due diligence and present opportunities, the review process should begin from a position of informed trust,” he said. “Trust is the foundation for capital deployment, and without it, even strong investment opportunities will struggle to gain traction.”
The GVCA Annual Conference continues to serve as a key platform for dialogue on investment strategies, policy alignment, and capital mobilization, with industry leaders increasingly focused on unlocking domestic pension funds to support Ghana’s economic transformation.
By: Christian Akorlie / businesspostonline
