Mon, Apr 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

African Fundraising Looks Set for a Record Year

Tuesday, January 22, 2013


By: Antoine Drean, CEO and Founder, Palico

It is hard to generalize about a continent that has 54 countries, 1 billion people, a plethora of languages, and many cultures. Still, a few salient African facts stand out.

With average annual growth of 5 percent over the past decade, Africa has been relatively untouched by the global financial crisis, plus its prospects look bright. Its population is set to double by 2025, while the economic infrastructure needed to serve its rapidly growing middle class is embryonic. It is the fastest growing region in world, with the International Monetary Fund estimating that 7 of the 10 fastest developing economies‚ between 2011 and 2015 will be in Africa.

All of this means that there is unprecedented interest in investing in African private equity - particularly in the sub-Saharan region, which arguably holds a relatively greater share of the region's unexploited potential. Public and private pension funds, endowments, foundations, insurance companies, family offices and sovereign wealth funds are eagerly reviewing investment opportunities in the region.

Given the review processes Palico has seen, and the number of fundraising campaigns targeting Sub-Saharan Africa, we think new private equity commitments for the region could hit $4 billion in 2013. That's more than three-fold the $1.2 billion raised in 2012 and easily surpasses the 2008 bubble-year record of $2.5 billion.

Overall, Palico counts 46 private equity funds with an Africa investment strategy currently fundraising. The funds are targeting $8 billion in commitments.

The biggest problem may not be getting into Africa in 2013, but eventually getting out. Nonetheless, the "build it and they will come" strategy GPs are following should work - if the region delivers on its promise.

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its