African Private Equity Players Are Confident as Track Records Deepen


March 28, 2014

Strong PE fundraising and brisk dealmaking in the extraction sector are the two big trends in African PE market in 2013, according to the latest survey by Deloitte. Confidence in PE in Africa is increasing. Kenya figures prominently by number of deals, as does South Africa, followed by Nigeria.

Track records are deepening, growth is strong, risks are manageable and LPs continue to rate the region highly amongst their emerging market options, said Deloitte.

The extractive industries had the highest value of reported deals in Sub Saharan Africa in 2013. Three large energy deals accounted for 63% of the year’s total reported investment. In 2011, the top three deals by value only accounted for 43% of the year’s total, and were spread across three different sectors. The largest deal done in 2012 barely topped USD 200m, said the report.

The largest deal in this sector was a USD 1.53bn transaction, involving Helios Investment Partners alongside BTG Pactual in a 50/50 joint venture with Petrobras International Braspetro B.V., a subsidiary of Petrobras, to explore and produce oil and gas in Africa, through a specialized investment vehicle. 

Measured by the number of deals, the manufacturing and financial sectors recorded the highest number of transactions (13 each), followed by agribusiness (12), TMT (7) and infrastructure (6). The Deloitte survey is based on 42 GP survey responses and three responses from Limited Partners. (Image source: Deloitte).

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