Q3 2023 Private Capital Activity in Africa

The report offers a comprehensive overview of the African Private Capital Activity in Africa, shedding light on the recent developments that took place during Q3 2023.

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🔻 Investment Downturn Permeated All Corners Of The Industry

The latest report from AVCA shows Africa’s private capital deal volume in Q3 2023 dropped 34% compared to the same period in 2022. The downturn slowed across all asset classes, with #venturecapital experiencing the steepest decline, causing a significant impact on total deal volume.

🌍 The number of venture capital deals was affected by the retreat in seed and early-stage investments.

However, Africa's private capital deal volume in Q3 2023 remains higher than pre-2021 levels, placing 2023 YTD on track to become the third-record year historically. 

Read the report: https://bit.ly/3SqhaZt

AfricanPrivateCapital #InvestmentTrends #2023Outlook

💼 Investors Shift Away From Large Deals Leading To A Decline In Deal Value Across Africa

African-focused fund managers generated US$1.2bn in deal value in Q3 2023, marking a 16% drop from the same period last year.

Since the beginning of the year, fund managers have been riddled with caution, evidenced by the decline in the total deal value across all ticket sizes.  This occurs for different reasons:

🔻 The absence of large #privatedebt deals particularly weighed on the total deal value recorded this quarter.

🌱 #VentureCapital has influenced activity levels of deals below US$100mn due to the retreat in #seed and #earlystageinvestments.

Read the full report: https://bit.ly/3SqhaZt
AfricanPrivateCapital #InvestmentTrends #2023Outlook

🌍 Decline In Venture Capital Triggers Slowdown In #WestAfrica

The #privatecapital industry has faced its share of challenges in the current macroeconomic landscape, impacting #dealmaking in Africa.

📉 Notably, West Africa bore the brunt of this decline, experiencing a substantial 59% drop YoY in Q3 2023, and a 59% drop in 2023 YTD compared to the same period in 2022. This decline can be directly attributed to the decrease in #venturecapital investments, which has historically been a driving force for deal activity in the region. 

However, West Africa is not to be underestimated - despite the ongoing slowdown, the region still dominated, capturing 36% of all venture capital deals in Africa in Q3 2023.

Read the report: https://bit.ly/3SqhaZt
#InvestmentTrends #EconomicUpdate

💡 Interim Fundraising Defies Headwinds

#Fundraising continued to be challenging in 2023 as factors such as the declining rate of #exits, and concerns about #valuations and potential returns. But despite a difficult year, the interim fundraising has defied the headwinds faced by many fund managers. In the first nine months of 2023, African-focused #fundmanagers raised more in interim closes than they did in the entire year of 2022.

AVCA's Q3 2023 Private Capital Activity in Africa report also shows that #PrivateDebt is gaining momentum as a diversification strategy among the funds that have reached their final closing.

Learn more by reading the full report: https://bit.ly/3SqhaZt
#InvestmentTrends #PrivateCapital #VentureCapital #FinancialInsights

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