The Search for Returns

AVCA, RisCura and SAVCA are pleased to present the first edition of The search for returns: Investor views on private equity in Africa report. The purpose of this report is to provide stakeholders with views on private equity in Africa from the Limited Partner’s (LP’s) perspective.This study examines future investment plans into African private equity, the region’s relative attractiveness, expected return drivers, preferred investment vehicles,and the challenges to investing in the region.

Key findings:

  • Africa is perceived to be more attractive than other emerging markets.
  • There is continued interest in emerging market private equity and growing interest in African private equity.
  • Earnings growth is expected to be the major driver of superior private equity returns for Africa in the long term.
  • A limited number of established general partners (GPs) and perceived weak exit environments are the most significant barriers to investing.
  • Regional funds are the preferred route to accessing African private equity in the near term.
  • A strong track record and operational expertise by GPs are key to attracting African PE commitments.
  • LP preference is for African fund managers to be based in Africa.
  • Environmental, Social and Governance (ESG) factors are at least equally important in Africa compared to other emerging markets.
  • African private equity returns are generally expected to compare favourably to listed equity.

We look forward to hearing your thoughts