Before the remarkable market contraction in 2020 and 2021, private equity (PE) fundraising activity across Africa showed strong growth between 2016 and 2019.
Before the significant market contraction in early 2020, private equity fundraising activity across Africa continued to show strong growth in the 2019 calendar year. The total value of PE fundraising in 2019 reached USD 3.8bn, up from USD 2.7bn in 2018, and the second-highest year of fundraising since 2010.
Pitchbook’s 2019 Annual US PE Breakdown report noted a similar spike in fundraising in the US, where an all-time high of USD 301.3bn in 2019 was achieved, up 52% from the prior year. The final closes of large Emerging Markets and Pan-African funds, such as Actis’ Emerging Markets Focused Fund & Actis Long Life Infrastructure Fund, which closed at USD 1.2bn contributed to the increase. Other larger funds include Amethis’ Pan-Africa Fund & Amethis Fund II, which closed at EUR 375m.
However, funds raised specifically for investment in South Africa, per the SAVCA 2020 Private Equity Industry Survey, fell approximately 48% from ZAR 7.1bn in 2018 to ZAR 3.7bn in 2019.
Recent benchmark interest rate cuts coupled with the resilience of private equity compared to other asset classes are potential silver linings to cushion the impact of these events.
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.
learn moreThis Bright Africa Private Equity report focuses on the PE ecosystem in 2021 – including fundraising, dry powder, investments and pricing – and considers some interesting trends.
learn moreBefore the remarkable market contraction in 2020 and 2021, private equity (PE) fundraising activity across Africa showed strong growth between 2016 and 2019.
learn moreWe have estimated the dry powder of the African Private Equity Industry, using fundraising data and the average deployment period RisCura observed.
learn moreThe extent to which supply of investable opportunities exists cannot be observed directly. However, the level of deal activity at which investors make such investments can be measured.
learn moreThe volume of exits and the quality of exit routes available in Africa have been key concerns for investors looking to access African PE. However, data shows that exits are taking place in Africa.
learn moreThe perception of risk and returns, compared to other investment opportunities, influences the PE market. We explore the theoretical cost of equity, which reflects the perceived risk of the different markets.
learn moreMany of the drivers of price changes are unobservable, so it is often difficult to interpret changes over time. We assess the data available.
learn moreWhen 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.
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