Exits

Trade buyers have consistently been the dominant exit route across the period, reflecting the continued importance of corporate buyers as the primary source of liquidity in African private markets. 

Sales to other private equity firms and financial investors were the most common exit route after trade buyers. This suggests an expanding role for private equity funds as buyers of mature portfolio assets, particularly when strategic buyers are limited or when existing investors seek partial liquidity. 

Public market exits remain rare, reflecting the limited role of public listings as a viable exit route given the relatively small size and lower liquidity of many African stock exchanges. One notable exception was Mediterrania Capital Partners’ partial exit from Cash Plus through an IPO on the Casablanca Stock Exchange in late 2025. While not a full traditional PE exit, the transaction demonstrates the potential for IPO-based exits in select African markets. Morocco appears to be developing a credible PE-to-IPO track record. SPE Capital has also publicly indicated its intention to pursue an IPO for Dislog Group on the Casablanca Stock Exchange within the next two to three years. This emerging concentration of IPO activity in Morocco is worth monitoring.

According to the RisCura PE Transaction Database, the average holding period across African private equity exits ranged from 6.2 to 8.1 years between 2020 and 2025. The elevated holding periods in 2020 and 2021 reflect pandemic-related exit delays. By 2025, the average holding period had declined to approximately 6.2 years, the lowest level recorded since 2018. This suggests a gradual normalisation of exit activity following the extended holding periods caused by COVID-19-related market disruptions.  

Historically, holding periods for African private equity investments have tended to exceed global averages, reflecting the limited range of exit routes available across many African markets. However, in 2025, African holding periods fell below the US market average of approximately 6.4 years, according to Ropes & Gray.

Exit activity remains geographically concentrated in a small number of markets across the continent. South Africa accounted for the majority of exits throughout the period, supported by more developed capital markets, a larger pool of strategic acquirers, and a relatively mature private equity ecosystem. North Africa and West Africa also recorded notable exit activity, reflecting growing investor interest in markets such as Egypt and Nigeria. 

Sectoral exit activity during the period was concentrated in financials, consumer-related sectors, and industrial businesses. Financial services companies accounted for the largest share of exits due to their predictable earnings profiles and the continued expansion of financial services across many African economies. 

Consumer staples and consumer discretionary businesses were supported by growing consumer markets and increased interest from strategic buyers seeking to expand distribution networks or product portfolios. This trend is illustrated by the 2024 trade sale of Absolute Pets by Sanlam Private Equity to Woolworths Holdings Limited, which enabled Woolworths to enter the fast-growing premium pet-care segment while leveraging Absolute Pets’ established brand and national store network to strengthen its speciality retail portfolio. 

General partners report improving confidence in exit prospects. AVCA surveys indicate that stronger capital market sentiment in select regions and a broader range of exit options have supported this shift in GP outlook. Limited partners remain more cautious. Weakness in the overall exit environment remains a top concern for LPs, highlighting a disconnect between GP expectations and LP liquidity outcomes. This is also reflected in AVCA’s 2024 African Capital Activity Report. 

Despite the recovery in exit activity, liquidity constraints remain a structural challenge of African private markets. In response, interest in alternative liquidity solutions has increased. The AVCA 2025 African Private Equity Industry Survey identifies GP-led secondaries as the leading mechanism expected to provide incremental liquidity going forward, followed by LP-led secondaries. Additionally, these structures are viewed as tools to manage extended holding periods rather than substitutes for traditional exits. 

Exit activity has improved from the disruption of the pandemic period, but liquidity remains uneven and dependent on a relatively narrow range of routes. Trade sales continue to dominate, while secondary transactions and selected public market exits are becoming more relevant. These liquidity conditions directly influence required returns, holding periods and the prices investors are