Stronger governance, strategy needed to unlock pension funds for private equity — Boamah

The Managing Director of Stanbic Investment Management Services Limited, Kwabena Boamah, has called for a more structured and strategic approach to pension fund investments in private equity, stating that gaps in policy, governance and expertise continue to limit participation in the asset class.

While acknowledging that more trustees are beginning to explore private equity and making second commitments, he noted that the pace of adoption remains uneven.

“We must move beyond interest to intentional, policy-driven participation,” he said.

Delivering a presentation at the 2026 Annual Conference of the Ghana Venture Capital & Private Equity Association (GVCA) in Accra recently, Mr Boamah addressed industry stakeholders on the theme: “Pension Fund Co-Investment Success: Internal Processes, Reviewing VC/PE Transactions, Expectations of Trustees and Fund Managers.”

Capability gap 

He identified the absence of dedicated expertise as a major constraint, explaining that many trustees lack specialised teams to properly evaluate private equity opportunities. This, he said, often resulted in hesitation and overreliance on surface-level assessments.

“There is a clear capability gap. In many cases, trustees are presented with summarised outputs rather than the underlying financial models. That limits their ability to interrogate assumptions and build confidence in the investment,” he explained.

He also pointed to weak or undefined investment policies as a critical issue, observing that many pension funds approach alternative investments on an ad hoc basis rather than within a structured allocation framework.

“If you do not define a target allocation for alternatives, you end up reacting to opportunities instead of executing a strategy,” he said.

Investment committees 

Another concern he raised was the role of investment committees, which he described as potential bottlenecks when decision-making is overly centralised.

“In some instances, a single dissenting voice can stall an otherwise viable transaction. Investment committees must foster balanced discussions and avoid gatekeeping tendencies that hinder progress,” Mr Boamah stated.

On the technical side, he emphasised the need for alignment between trustees and fund managers, particularly in how private equity investments are assessed. He noted that while trustees often focus on individual deals, fund managers prioritise the quality and governance of the General Partner (GP).

“In private equity, you are ultimately backing the manager, not just the deals. Deals can evolve or fall through, but the fund manager remains the constant. That is where the primary risk and opportunity lies,” he said.

“The GP is the machine that sources and processes deals, and hence getting the right machine is more important than showcasing one or two deals,” he stated

Governance non-negotiable

Mr Boamah further underscored the importance of governance, especially within the African context, where weak structures can undermine otherwise promising investments.

“Strong governance is non-negotiable. Investors must ensure they have the necessary rights and oversight mechanisms to protect their capital,” he stated.

He clarified that under current regulations, pension funds can only access private equity through two channels: fund-of-funds structures or direct commitments to licensed private equity funds, noting that co-investment is not presently permitted.

Call for trust

Mr Boamah urged stronger collaboration and trust between trustees and fund managers, arguing that this relationship is essential for unlocking capital flows into the private equity space.

“When fund managers have undertaken rigorous due diligence and present opportunities, the review process should begin from a position of informed trust,” he said.

“Trust is the foundation upon which capital moves and without it, even the most compelling opportunities will struggle to gain traction, He said

The GVCA annual conference continues to serve as a key platform for shaping dialogue around investment strategies and mobilising capital to support Ghana’s economic growth.