Kwabena Boamah, Managing Director of Stanbic Investment Management Services Limited, has called for a more structured and strategic approach to pension fund investments in private equity, warning that policy gaps, governance challenges 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 industry players on the theme, “Pension Fund Co-Investment Success: Internal Processes, Reviewing VC/PE Transactions, Expectations of Trustees and Fund Managers.”
He said although more pension trustees are beginning to explore private equity opportunities and make repeat commitments, adoption across the industry remains slow and inconsistent.
“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 stated.
According to him, one of the biggest challenges is the lack of specialised expertise within pension fund management structures, making it difficult for trustees to properly assess private equity opportunities.
He explained that many trustees often rely on summary reports instead of detailed financial models, limiting their ability to critically evaluate investment assumptions and build confidence in the process.
“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 noted.
Mr Boamah also raised concerns about weak or unclear investment policies, saying many pension funds approach alternative investments without a defined long-term strategy.
“If you do not define a target allocation for alternatives, you end up reacting to opportunities instead of executing a strategy,” he said.
He further pointed to investment committees as possible 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 added.
On private equity assessments, Mr Boamah stressed the importance of alignment between trustees and fund managers. While trustees often focus on individual deals, he explained that fund managers pay closer attention to the strength, 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 said.
He added that the GP remains central to sourcing and managing quality investment opportunities, making the selection of the right fund manager more important than showcasing a few attractive deals.
Mr Boamah also underscored the importance of strong governance structures, especially within the African investment landscape, where weak oversight can undermine promising ventures.
“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 current 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 permitted.
Mr Boamah urged greater collaboration and trust between trustees and fund managers, describing the relationship as critical to unlocking more capital into Ghana’s private equity ecosystem.
“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 serve as an important platform for discussions on investment strategies and capital mobilisation to support Ghana’s economic growth.