African private equity funding hit $4.3bn in 2015

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The total value of African private equity funding increased to US$4.3 billion in 2015, in spite of the slowdown in emerging market economies.

This is according to Bright Africa, the ongoing research endeavour from Africa investment specialists RisCura.

“The slowdown in the growth of emerging market economies hasn’t inhibited the ability of African investment managers to attract significant amounts of capital, particularly for the larger Pan-African funds as well as Sub-Saharan Africa funds,” said Rory Ord, executive at RisCura.

The report said some of the largest African private equity funds seen to date were closed in 2015, including Helios Investors Fund III (US$1.1 billion), Abraaj Africa Fund III (US$990 million) and African Development Partners Fund II (US$725 million).

“Investors making commitments to Africa may be flocking to these experienced managers as a way of mitigating their risk, knowing that the next few years are bound to be a more difficult time for the continent,” Ord said.

According to the report, the consumer discretionary sector continued to attract interest from investors, making up 22 per cent of all transactions in 2015. Of particular interest over the past few years has been online retail, education services such as tertiary education and colleges, as well as advertising and publishing houses.

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