This research aims to highlight the current state of the private equity market in Africa, and trends in prices paid for private equity assests over time.
Insights on the current state of the private equity market in Africa and trends in pricing over time
Before the significant market contraction in early 2020, private equity fundraising activity across Africa continued to show strong growth in the 2019 calendar year.
Fundraising represents the supply of capital available from private equity funds for investment. The extent to which an equal supply of investable opportunities exists is not directly observable.
Along with changes in the supply of capital and investable opportunities, another factor that influences the prices at which asset change hands is the perceived risk and rewards of a particular investment.
Many of the drivers of price changes are unobservable, so it is often difficult to interpret changes over time.
When looking at the prices for private equity assets in South Africa and Africa and the landscape that influences it, we can see market fundamentals reflected.