Africa Raised Over $2bn In Closed Private Equity Funds

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By Zimbabwe Investor on November 28, 2013. No Comments

Closed Africa-focused PE fundraisers have brought in over $2 billion within January and September, already exceeding 2012 full-year figures, according to Private Equity Africa, an industry publication for fund managers, investors and advisors.

According to the publication. the latest figures are based on data which Preqin, a leading alternative assets intelligence firm, supplied exclusively to Private Equity Africa.

This year’s figures have been driven in part by an $800 million fund closure at the beginning of the year by Ethos, Vital Capital’s $350 million maiden vehicle and another $243 million debut fundraiser by Phatisa, Private Equity Africa said.

The figures only cover final closures, and exclude interim closings from some of the industry’s largest funds, including Carlyle, which has already exceeded its original target, and will touch $700 million by year-end, according to Private Equity Africa research.

However, the report shows that the figures do not include Development Partners International, which has exceeded $400 million in its first closing, and Amethis with a $290 million first close during the year.

Commenting on the figures, Adeola Dosunmu, Head of Research at Private Equity Africa, said: “This year’s fundraising figures bring great warmth to the continents fundraising environment and demonstrates that improved LP sentiment for Africa is slowly translating to solid commitments.”

Signs of this growing sentiment were shown earlier this year when the Emerging Private Equity Association (EMPEA) placed Sub-Saharan Africa in its top tier for emerging markets, displacing traditional BRIC markets, said Dosunmu.

“Improved LP sentiment has also underpinned the launch of Abraaj’s $800 million Africa-focused vehicle which is twice the size of its predecessor. Expectations are that 2014 will be an even more positive year, with expected final closes from groups such as Carlyle,” added the publication’s Managing Editor, Gail Mwamba.

– Ventures Africa