LAGOS, Nigeria, Capital Markets in Africa: Welcome to the July edition of INTO AFRICA, a publication with fresh insight into Africa’s emerging capital markets. Please download by clicking INTO AFRICA PUBLICATION: JULY EDITION

African countries experienced an exponential growth trajectory over the past ten years and will continue to demonstrate strong fundamentals that signal continued growth in the medium-term and long-term. Despite recent short-term volatility over the growing austerity, slow growth in Europe and Britain (the Brexit effect), concerns over slowing growth in China as well as a commodity slump, Private Equity has maintained its key role in Africa’s economic transformation and sustainable growth by supporting small-medium enterprises as well as promoting impact and sustainable investment in Africa.

Africa-focused private equity funds raised US$4.3 billion in 2015, more than double the US$1.9 billion raised in 2014, according to African Private Equity and Venture Capital Association (AVCA) data. Helios Investment Partners closed the first-ever $1bn-plus Africa-focused private equity fund in 2015 by raising US$1.1 billion, while Abraaj closed its sub-Saharan vehicle at US$990 million and African Development Partners settled at US$725 million. However, the value of private equity deals in Africa fell by 69 percent to US$2.5 billion in 2015, from a total of US$8.1 billion in 2014, the AVCA data reveals. So, the lack of viable investment opportunities is the key issue facing private equity in Africa.

Private equity seems like a perfect model for Africa as the Asset Class has unlocked the potential for investors to contribute and benefit from Africa’s growth story. In addition, private equity has also helped innovative and dynamic African companies achieve their ambition who may otherwise been limited only by a lack of capital and experience, drive forward some of the most exciting new prospects, entrepreneurs and business leaders on the continent. As a result, this edition focuses on Private Equity in Africa and is titled Private Equity: Africa’s Trump Card.


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