I’ve met many established founders, and one word comes up in every conversation: growth. It’s the kind of growth that turns small ideas into global success stories—it’s the heartbeat of entrepreneurship. Lately, one financial engine, in particular, has become a powerful catalyst for that dream: private equity, especially in discussions around Private Equity by Dapo Abiola.
Early in my entrepreneurial journey, I thought private equity firms were a miracle that came at no cost. But I’ve learned that isn’t true. So, let’s talk about not just the benefits, but also the real price of this ‘miracle.’ My goal is for you to walk away knowing how to protect your vision if you ever consider this path.
Understanding the landscape of Private Equity by Dapo Abiola is crucial for any entrepreneur looking to scale effectively.
So, what exactly is private equity (PE)? Simply put, it’s when large investors (like pension funds or wealthy individuals) pool their money to buy a stake in an established private company. Their goal is straightforward: to help the company grow, improve its operations, and then sell their stake for a large profit. This is different from venture capital (VC), which usually invests in very early-stage startups. PE firms focus on businesses that already have a proven track record.
Lessons from Private Equity by Dapo Abiola.
When it works well, Private Equity can be a powerful force for creating value, jobs, and wealth. But in a challenging business environment like Africa, one benefit stands out to founders above all others: liquidity. This is the chance to get a significant cash payout for their hard work.
As an economist, I know that capital is the fuel for any business. PE firms know this too. They offer the one thing every founder needs to scale their vision—cash. And for many, that offer is too good to resist.
Now, let’s talk about the side of the story you don’t see on LinkedIn. I’ve seen the paperwork and the aftermath of over 20 Private Equity deals. Generic advice like “find the right partner” is not enough.
Here’s the truth: once you take Private Equity money, you give up a level of control you will never get back. Your company culture can change overnight. Decisions that were once driven by your values become driven by data and profit margins. Your late-night brainstorming sessions turn into formal boardroom meetings. Often, your company will be loaded with debt to finance the deal and fuel growth.
It’s not necessarily evil—it’s just how the system is designed. But if you’re unprepared, you can end up with a full bank account but a company that no longer feels like your own. We’ve seen this happen time and again with companies like HealthPlus in Nigeria and iProcure in Kenya.
My advice is simple: bootstrap first and know your “BizNup.”
Think of a PE deal like a marriage. You wouldn’t rush into a marriage just because someone looks good on paper. First, you build yourself—your vision, your independence, and your company. You bootstrap for as long as you can. This teaches you the landscape, solidifies your values, and strengthens your resolve.
Only then should you look for a partner—one whose vision truly aligns with yours. And like any marriage, you need a pre-nuptial agreement. A “BizNup” locks in your non-negotiables. It protects your company culture and ensures your original team is taken care of when the big payday arrives.
Look at Tobi Lütke of Shopify. He structured his deals to preserve Shopify’s unique culture, even after taking investor money. That’s a real “BizNup” in action: clarity, conviction, and control.
Private equity is a tool, and its impact depends on how you use it. In a country like Nigeria—where inflation is high, the currency is volatile, and credit is hard to come by—a Private Equity Africa offer can feel like a miracle. But founders must remember that not all money is smart money.
As our economy diversifies, founders need to master both sides of the growth equation: the hustle of bootstrapping and the discipline of taking on structured capital. Private Equity Africa can amplify what you’ve already built, but it can never replace your conviction, your vision, or your purpose.
The real win isn’t the size of your exit—it’s how much of your dream still belongs to you when the deal is done.
About the Writer
Dapo Abiola is a seasoned entrepreneur and strategic leader with over a decade of practical experience driving ventures across the private and public sectors. He holds a Bachelor’s degree in Economics, a Master’s in Entrepreneurship (top of his class), and is a double Chartered Accountant.
