Pantheon african private equity and venture capital association. This list of private equity firms headquartered in africa provides data on their investment activities, fund raising history, portfolio. Kibo inks last deal for fund ii, ebrds follow on investment in basharsoft, tide africa backs first fintech and more may 4, 2020 0 weekly wrap, april 27th, 2020. The emergence of african private equity as a popular asset class has had much to do with africa s compelling economic fundamentals. The number of venture capital deals, for example, have steadily climbed and they now. Political stability and better governance considerable progress has been made in these respects, but several grey areas. Private equity investment in africa financier worldwide. This represents a growing opportunity for private equity players to tap into the potential of africa on the back of a rapidly emerging middle continue reading why 2017 is the year for private. Private equity africa events pea 2020 investor summit. Early stage investment in subsaharan africas tech sector frontier. To order reprints of this article, please contact dewey palmieri at dpalmieriat or 2122243675. North africas share of deal value rose to 42 percent in 2016, up from 38 percent in 2015, according to empea data, with egypt, morocco and tunisia accounting for more than 90 percent of. In 2009 i was given the responsibility of ensuring that we were mapping and getting a feel for the manager universe in africa.
Todays top 898 private equity jobs in south africa. Trends and outcomes of private equity in africa africa africa. The first on private equity investment in africa in 20 and the second on infrastructure investment in the same year. Ghana private equity and venture capital ecosystem study english abstract. This represents a 100% growth in two years compared to the first seven years of private equity activity in east africa. Despite the challenges to investing in the various regions within africa, many economic indicators are pointing in the right direction and. Bringing a unique joint practitioner and academic perspective to the topic, this is the only available text on private equity truly international in focus.
Examples are drawn from europe the middle east, africa and america with major case studies from a wide range of business sectors, from the prestigious collection of the london business schools coller institute of private equity. Channelling african private capital into africa is a vital. Jp morgan has hired ex africa focused investor faheen allibhoy as head of its newly created development finance institution dfi the dfi is set to finance over billion investments annually across emerging markets allibhoy has been brought in to fill the role of managing director after spending years. A growth engine trends and outcomes of private equity in africa. Therefore pe is a perfect fit for developing africa. Eys private equity roundup series delves into the drivers of fundraising, investment activity and exits across a range of developing economies, including africa, china, india and latin america. The bank believes that the asset class is an effective way to strengthen africas economies, create jobs and drive development.
Questionnaire on donor support to enhance private investment for infrastructure in africa, page 8. With twofifths of africas gdp growth this year, the region is a powerhouse. South africa, foreign companies in the food processing industry. Latest african private equity and venture capital news from avca members. It helps unlisted dynamic companies to expand, create jobs and ultimately facilitate growth in their economies.
Private equity in africa thoughts and comparisons from. Private equity in africa has come a long way since the early 1990s, which saw development financial institutions dfis investing in governmentinitiated development projects across the continent. Sev vettivetpillai of the abraaj group felt that africa on the whole, is a much better place from an lp perspective compared to. Oct 18, 2017 the ft and empea are once again hosting the private equity in africa summit to paint a more nuanced portrait of investment throughout the continent at a critical time when there are increased signs of technological change and innovation in subsaharan africa. The period that followed was characterised by the emergence of a limited number of south african focused pe funds, which over the next decade started to invest more widely across the continent. African private equity pe markets have grown exponentially in recent years and, going by the results of the 2016. Contrast this to the activity slump in many of the. A provisional look at 2019 halfyear private equity activity in africa, including funds, deals and exits announced. About 8 to 10 years ago, the concept of private equity was not wellknown in africa.
North africas share of deal value rose to 42 percent in 2016, up from 38 percent in 2015, according to empea data, with egypt, morocco and tunisia accounting for more than 90 percent of deals. A lot of it is beefing up those teams in order for them. Private equity in africa opportunity for investors. Mediterranias third fund outstrips goal, phatisa makes a second deal for. A new era for private equity in africa daily maverick. Measuring the economic impact of private equity funds.
Target andor its security holders at the closing of i cash. They are active partners in company growth and work closely with company executives on value creation. Jp morgan has hired exafricafocused investor faheen allibhoy as head of its newly created development finance institution dfi the dfi is set to finance over billion investments annually across emerging markets allibhoy has been brought in to fill the role of managing director after spending years. Private equity in the uk originated in the late 18th century, when entrepreneurs found wealthy individuals to back their projects on an ad hoc basis. Sdgs are an opportunity for the private sector and vice versa. Africa is among the most talked about parts of the world for private equity firms looking to invest in emerging markets. A type of private equity fund called a search fund has been gaining popularity recently. Private equity business can be divided into distinct regions. In fact, teaching those at the top how to manage hockey stick growth is often the most important tool a private equity firm can bring to the partnership. From the supply side, there is a lot of money in the world looking for growth and one of the few regions where we are still seeing strong growth, although it has been muted in recent times, is in africa. The private sector, driving force of africas growth. Jeff buckland, sibongile solombela and david harrison of hogan lovells examine the landscape for private equity investment in africa.
Norway is back on the map for private equity investors. Mapping support for africas infrastructure investment unohrlls. Impact investing and the sdgs investisseurs et partenaires. Despite the positive narrative surrounding africa as the next frontier for investments, investor perceptions in terms of the cost of doing business in the continent remain an area of concern. May 05, 2014 the good folks over at africa assets have teamed up with cross border information to release these two maps. Private equity investment in africa in support of inclusive. Apr 22, 2020 avca 2019 h1 african private equity data tracker provisional halfyear private equity funds, deals and exits activity. As regards africa, the above principles, according to francisco ferreira, chief economist for africa at the world bank, translate into six conditions which concern both the private sector and the public authorities equally. Ghana private equity and venture capital ecosystem study. It provides an overview of the private equity and venture capital market in the country, describing key. These days, we are seeing more and more capital coming to africa, and private equity is being discussed in many forums, which shows that the industry is gaining traction. This forward looking survey provides valuable insight into how fellow private equity pe practitioners view the landscape at present as well as their future expectations. The emergence of african private equity africa has long been seen as the last frontier for investing, and since the turn of the millennium, the continent has become increasingly attractive for pe investors.
Avca 2019 h1 african private equity data tracker provisional halfyear private equity funds, deals and exits activity. The main reasons for including private equity in an investment portfolio are. The economist speaks of private equity being warmly welcomed in africa and forbes observes heady times for the private equity industry in the region. Private equity is invested in exchange for a stake in your company and, as shareholders, the investors returns are dependent on the growth and profitability of your business. Analysis of countries competing for inward investment in potential sectors 29. Introduction private equity financing is undertaken for various reasons. Privcap briefing private equity in africa q1 2012 5 often based on a stellar entrepreneur or management team. Deals were larger, investment was broader and large global investors were more active than ever. The value of private equity assets under management has risen. Bright africa 2015 african private equity and venture capital.
Private equity in africa thoughts and comparisons from the middle east much has been written in the press recently about the growth of private equity in africa. The summit will lead into the industry flagship 9th annual private equity africa awards gala dinner. The 2020 event will bring together industry leaders to predict the private equity investment landscape in africa over the next decade. The good folks over at africa assets have teamed up with cross border information to release these two maps. By injecting riskcapital, they become partners in a firms growth. Why 2017 is the year for private equity in africa quantum. Private equity in the uk originated in the late 18th century, when entrepreneurs found wealthy. Private equity investors offer more than just funds. Private equity in africa has come a long way since the early 1990s, which saw development financial institutions dfis investing in government. Despite the oil price slump from 2014 and the continued slow down in real gdp growth. Finders fee agreement watervale equity partners preamble. The number of funds with presence in the region doubled from 36 recorded in our first survey to 72 in 2016.
This paper discusses the landscape for private equity and venture capital financing in ghana. Africa is definitely on the map and on the minds of many investors. Watervale is the manager of a private equity fund the fund. This article analyzes the steady growth of the private equity industry in africa. Foreword this forwardlooking survey provides valuable insights into how fellow private equity pe practitioners currently view the african pe landscape, as well as their future expectations. List of top africa private equity firms crunchbase. Our quarterly, semiannual and annual reports deliver fresh insight into the forces shaping activity. Building on three strong years, the asiapacific private equity pe industry achieved its best allaround performance to date in 2017, signaling the start of a new era. African economies have continued to diversify over recent years and are still among the fastest growing in the world, with some countries growth rates exceeding 7 percent over a sustained period. The economist speaks of private equity being warmly welcomed in africa and forbes observes heady. Private equity has become easily accessible as the regulatory environment continues to advance but investors need to be aware of high investor cost associated with some private equity funds. There are almost 100 private equity funds registered with the south african venture capital and private equity association savca.
Private equity has been a recent and powerful catalyst for economic growth on the african continent, and it shows every sign of continuing to do so. These regions are displayed in the adjacent map, and table below. The second largest region for private equity is asia, where 90 billion u. Private equity in africa has come a long way since the early 1990s, which saw development financial institutions dfis investing in government initiated development projects across the continent. Cliffe dekker hofmeyr private companies and the paradox. Private equity in africa thoughts and comparisons from the. The ft and empea are once again hosting the private equity in africa summit to paint a more nuanced portrait of investment throughout the continent at a critical time when there are increased signs of technological change and innovation in subsaharan africa. Despite the challenges to investing in the various regions within africa, many economic indicators are pointing in the right direction and some traditional market barriers are being broken down. The panel discussion, moderated by gail mwamba of private equity in africa, offered their insights as investors and private equity practitioners, talking through the current private equity trends in africa.
Instead of pooling money to invest in a business, the investors throw a few hundred thousand. Investors can access private equity funds through companies such as old mutual and momentum which offer retail products if the investor does not meet the minimum investment criteria to invest directly into the funds. Empea brief the road ahead for african private equity. This is according to the map of private equity firms based in sub. The pea investor summit is an editorially driven fullday event that predicts trends and hones strategies. Private equity activity in north africa has remained strong fuelled by the perception of returning stability post arab spring. Private companies in south africa, in terms of s82 of the companies act, no 71 of 2008 companies act, are i prohibited from offering their securities to the public and ii required to restrict the transferability of their securities in their memorandum of incorporation moi although the companies act does not prescribe the manner in which this must be done.
Looking at pe exits more broadly in the region, including sales of minority stakes in private companies and shares of publicly traded enterprises, the numbers were still down. Before the economic cycle turned, private investment activity in africa had grown for four consecutive years. Mediterranias third fund outstrips goal, phatisa makes a second deal for second food fund, cdc appoints new head of risk and more. Nevertheless, the share of private equity invested in emerging countries in 2012 devoted to subsaharan africa rose to 4. Apr 28, 2017 african economies have continued to diversify over recent years and are still among the fastest growing in the world, with some countries growth rates exceeding 7 percent over a sustained period. Oct 07, 2019 the second largest region for private equity is asia, where 90 billion u. An investor therefore risks losing a substantial part or all of his investment due to the speculative nature of the investment and the risks discussed above.
This article analyzes the steady growth of the private equity industry in africa, noting. Investment map is not only useful for ipas and tpos, but the public and private sector can also. This is why private equity is an important source of risk capital here. Organizations in this hub have their headquarters located in africa.