Geeska Afrika Online

Africa private equity fundraising to fall this year-association

Nairobi (HAN) March 1, 2016 –Geeska Markets. African private equity funds are likely to raise less cash for investments this year after a bumper year in 2015, the African Private Equity and Venture Capital Association (AVCA) said.

Private equity funds investing on the continent closed funding rounds worth $4.3 billion last year, up from $1.9 billion the previous year, AVCA said in its Annual African Private Equity Data Tracker seen by Reuters on Tuesday.

“2015 was a bumper year for fundraising, with a handful of large funds achieving final closes during the year,” the association said.

“As such, 2016 is likely to see lower fundraising totals.”

The total value of private equity deals in Africa dropped to $2.5 billion last year, from $8.1 billion in 2014, with deals worth less than $250 million increasing from the prior year.

Deals announced during the period included PCM Capital Partners’ investment in the Azalai Hotels group of West Africa and 8 Miles’ investment in Orient Commercial Bank in East Africa.

AVCA said Africa’s burgeoning population meant investments were likely to be focused on consumer-driven sectors over the medium-term.

“Other sectors that may be of interest include infrastructure, real estate and energy,” it said.

A total of $16.2 billion has been raised by Africa private equity funds between 2010 and 2015, AVCA said. There were 823 private equity deals worth $21.6 billion during that period, the association added. (Reporting by Duncan Miriri; Editing by Mark Potter)




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