Finance: Remaining relevant in Africa
Tuesday 8 October
13:15 - 14:15
The mismatch between the size of available deals in African markets and the target investment size of global asset managers continues to be an issue. Is it time to consider instruments such as evergreen vehicles as an alternative to fixed-life funds?
The typical PE time frame of a five-year holding period is often too short in the African markets, where companies require more wholesale change, the currency risk is a challenge, and exit opportunities are limited.
Investors are also seeking more transparency as to how a fund’s returns are generated.
In 2018 54% of total PE capital was dedicated to investment in the U.S., 22% to Europe, and 20% to Asia (excluding the Middle-East). The rest of the world – Africa, Middle-East, Latin America – only accounted for 4% of the fundraising. (Source: NMI)