African private equity:

Why patience
pays off AFRICA in 10 slides
From droughts to currency Click here
crashes, Africa has endured to read more on
some tough times in recent key trends
years.

Click on a region to see

which countries dominate
deal activity.
Required: patience and smart manager selection Click here
to read more on
performance in Africa
Investors in Africa must contend with long holding periods; pooled net IRRs have suffered accordingly

Average holding period by exit year Private equity and venture capital returns
over 10 years (%)
8
9

7 8

6 7

6
5
sraey f o oN

5
4

4
3
3

2
2

1
1

0 5.1 3.9 4.0 4.3 5.7 6.1 5.9 5.0 6.2 7.7 6.5 0 4.14 8.82 1.48 2.85 3.68
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1-quarter 1-year 3-year 5-year 10-year

Source: EY & AVCA Source: Venture Capital Index, Cambridge Associates

as of 31 December 2017
(*see final page for notes)
Factors to remember Click here
to read more on
the next wave of
Fundraising has stalled Macro still matters African private equity
Half of the African-focused funds to close in 2017 Two-thirds of GPs consider political risk
failed to hit their targets management when constructing portfolios

4.5 14
Expect to commit
4 12 resources or spend
substantial time on
3.5 11
the ground to
3 9
develop local
relationships, best
)nb$( des iar lat ipaC

des o lc sdnuf f o oN
2.5 8 practices and to help
your investees drive
2 6 their growth.
Consider how to
1.5 5
mitigate against
1 3
currency risks and to
manage political
0.5 2 risks, but think and
act micro
0 0
2012 2013 2014 2015 2016 2017 Charles Groom, Africa portfolio
director, CDC Group

Capital raised ($bn) No of funds closed

Sources: PEI/UNCTAD/AVCA
 Click here
Out of Africa to read more
The exit environment in 2017 was challenging, but the number of PE exits was only just below the 2016 peak

Number of exits per year North Africa West Africa South Africa
Proportion of exits (%)

7 1- 7 0 0 2

7 1- 7 0 0 2

7 1- 7 0 0 2
14 23 43

5 1- 7 0 0 2

5 1- 7 0 0 2

5 1- 7 0 0 2
12 25 42

7 1- 6 1 0 2

7 1- 6 1 0 2

7 1- 6 1 0 2
34 39 40 45 50 49 22 16 45
2012 2013 2014 2015 2016 2017

Top countries for exits Southern Africa Central Africa East Africa
(exc South Africa)
7 1- 7 0 0 2

7 1- 7 0 0 2

7 1- 7 0 0 2
South Africa 45%
9 1 10
Egypt 8%
5 1- 7 0 0 2

5 1- 7 0 0 2

5 1- 7 0 0 2
Nigeria 6% 9 1 11

Morocco 6%
7 1- 6 1 0 2

7 1- 6 1 0 2

7 1- 6 1 0 2
8 0 8
Tunisia 6%

Source: EY/AVCA
 Click here
West Africa to read more
Nigeria remains 'difficult to ignore' but the francophone
region is growing fast
Private equity deals in West Africa (2012-17)

Nigeria

Ghana

Ivory Coast

Burkina Faso*

Liberia*

Mali

Senegal*

Sierra Leone*

Niger*

Togo

Benin*

Guinea**

Cape Verde***

0 10 20 30 40 50 60 70 80

% share of PE deals by volume in West Africa, 2012-17 * Accounted for less than 1% of % share of PE deals by value
** Accounted for less than 1% of % share of PE deals by volume
% share of PE deals by value in West Africa, 2012-17 *** Accounted for less than 1% of % share of PE deals by value and volume
Source: AVCA
 Click here
Southern Africa to read more
The dominant force in African private equity is
recovering after recent macro uncertainty

Private equity deals in southern Africa (2012-17)

South Africa

Mauritius

Zambia

Madagascar

Zimbabwe*

Namibia*

Botswana

Mozambique

Angola

Lesotho*

Malawi

Comoros**

Swaziland**

0 10 20 30 40 50 60 70 80

% share of PE deals by volume in southern Africa, 2012-17

* Accounted for less than 1% of % share of PE deals by value
% share of PE deals by value in southern Africa, 2012-17 ** Accounted for less than 1% of % share of PE deals by value and volume
Source: AVCA
 Click here
East Africa to read more
Buoyed by a booming tech sector, the region is set
for a bumper year in 2018

Private equity deals in East Africa (2012-17)

ay neK
ad nagU
ai naz naT
aipoi htE
ad nawR
it uobijD

0 5 10 15 20 25 30 35 40 45 50 55 60

% share of PE deals by volume in East Africa, 2012-17

% share of PE deals by value in East Africa, 2012-17

Source: AVCA
 Click here
North Africa to read more
GPs in the region, traditionally bracketed with
the Middle East, are looking southwards

Private equity deals in North Africa (2012-17)

o c co ro M
tpygE
aisi n uT
aireglA

0 5 10 15 20 25 30 35 40 45

% share of PE deals by volume in North Africa, 2012-17

% share of PE deals by value in North Africa, 2012-17

Source: AVCA
This report was compiled
from data collected for PEI's
Africa Special supplement
published in September
2018.

Graeme Kerr
Special Projects Editor
Private Equity International
graeme.k@peimedia.com
+44 (0)203 862 7491

Design: Miriam Vysna

Production: Mike Simlett

*Private equity and venture capital returns over 10

years
The index is a horizon calculation based on data from 51
Africa and private equity and venture capital funds
including fully liquidated partnerships, formed between
1995 and 2015. Private indexes are pooled horizon IRR
calculations, net of fees, expenses and carried interest