Kwabena Boamah, Managing Director of Stanbic Investment Management Services Limited, has called for a more strategic and structured approach to pension fund investments in private equity, warning that policy gaps, weak governance structures and limited expertise continue to slow participation in the sector.
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 highlighted both the progress being made and the ongoing challenges preventing pension trustees from fully embracing private equity as a viable investment option.
“While it is encouraging that more trustees are beginning to explore private equity and even making second commitments, the pace of adoption remains uneven. We must move beyond interest to intentional, policy-driven participation,” he said.
Mr Boamah identified the lack of dedicated expertise as one of the major barriers to growth in the sector, explaining that many trustees do not have specialised teams capable of properly assessing private equity opportunities.
According to him, this often leads to hesitation and an overreliance on summary reports instead of deeper financial analysis.
“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 unclear investment policies as another critical challenge, noting that many pension funds still approach alternative investments without a defined allocation strategy.
“If you do not define a target allocation for alternatives, you end up reacting to opportunities instead of executing a strategy,” he stated.
Mr Boamah further described investment committees as potential bottlenecks when decision-making becomes 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,” he said.
Touching on private equity assessments, he stressed the need for stronger alignment between trustees and fund managers. While trustees often focus on individual deals, he explained that fund managers place greater emphasis on the quality, governance and track record 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 lie,” he noted.
He added that the GP serves as the engine that sources and manages investment opportunities, making the selection of the right fund manager more important than highlighting a few attractive deals.
Mr Boamah also underscored the importance of strong governance structures, particularly within the African investment landscape, where weak oversight 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 stressed.
He clarified that under existing regulations, pension funds can only invest in private equity through fund-of-funds arrangements or direct commitments to licensed private equity funds, noting that co-investment structures are currently not allowed.
Mr Boamah called for stronger collaboration and trust between trustees and fund managers, describing the relationship as essential for unlocking more capital into the private equity sector.
“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.”
The GVCA Annual Conference continues to provide a major platform for discussions on investment strategies and capital mobilisation aimed at supporting Ghana’s economic growth.