African Private Equity Firms Close In More Than $2 Bln In Jan-Sept, Eyes More In 2014

Written by Kevin Mwanza

Africa focused fund managers have raised in excess of $2 billion in the first nine month of 2013, exceeding 2012 full-year amounts, and are forecasting a better 2014, BusinessDay quoted Private Equity Africa, a publication for fund managers.

The report from latest data by Pregin, an alternative assets industry data source, showed that this year’s figures have been driven largely by strong closings reported by Ethos which announced its $800m fund closure at the beginning of 2013, Vital Capital which has brought in $350m for its maiden vehicle and Phatisa, which reported a $243 final close of its first fund.

A number of other smaller funds also reached final close during the year.

“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,” said Adeola Dosunmu, Head of Research at Private Equity Africa.

” 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.”

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 $700m by year-end, according to Private Equity Africa research.

Figures also do not include Development Partners International, which has exceeded $400m in its first closing, and Amethis with a $290m first close during the year.

“Expectations are that 2014 will be an even more positive year, with expected final closes from groups such as Carlyle,” BusinessDay quoted Gail Mwamba, Managing Editor of Private Equity Africa, saying.