Summary of Trends in Private Equity in Africa, 2010 - 2015

Proshare

Wednesday, October 05, 2016 6.49AM / Annual African Private Equity Data Tracker

Key Findings

        823 PE deals were reported in Africa between 2010 - 2015, totalling US$21.6bn

        Deals below US$250mn in size have been stable in recent years, with the total annual deal value of these deals increasing slightly in 2015 relative to 2014. In 2015, there were fewer deals above US$250mn in size compared with 2014, resulting in a lower overall total deal value

        Sub-sectors that saw a notable increase in PE deal values in 2015 relative to 2014 (albeit from a low base) were Commercial & Professional Services (Industrials), Health Care Equipment & Services (Health Care) and Software & Services (Information Technology)

        African PE firms have closed funds totaling US$16.2bn since 2010. Half of the funds were Regional funds (i.e. focusing on particular regions within Africa), a third were Sub-Saharan funds and the remainder were Pan-African

 


Outlook
2015 was a bumper year for fundraising, with a handful of large funds achieving final closes during the year. As such, 2016 is likely to see lower fundraising totals.

Africa’s positive demographic trends mean that PE investment is likely to remain targeted at consumer-driven sectors over the medium term. Other sectors that may be of particular interest include Infrastructure, Real Estate and Energy. West and East Africa should continue to remain attractive destinations for PE investment on the continent.

Notwithstanding the current uncertainty around emerging market economies, low commodity prices and depreciating local currencies, many PE investors in Africa have developed the requisite skills, experience and knowledge to continue to invest, grow and add value to portfolio companies.




Disclaimer
AVCA refers to the African Private Equity and Venture Capital Association Limited, a company limited by guarantee registered in the United Kingdom. AVCA is a pan-African industry body whose international members include private equity and venture capital firms, institutional investors, foundations, endowments, international development institutions and professional services firms. The views expressed in this publication do not necessarily reflect the views of AVCA’s board of directors, advisory council or members. This publication has been prepared on the basis of data sourced from AVCA’s database, which contains information from public sources and private equity firms that has not been independently verified by AVCA. Contact them for further information via avca@avca-africa.org

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