2021 African Private Equity Industry Survey

This is the second edition of AVCA’s Private Equity Industry Survey, which examines the plans, preferences, and expectations of 34 Limited Partners (LPs) and 43 General Partners (GPs) engaged in African private equity (PE). It follows our inaugural industry survey, published in March 2020, which was well-received by the market. The study discusses the PE landscape in Africa, analysing key market drivers and impediments affecting the industry to provide a deeper understanding of how LPs and GPs are evaluating their private equity assets in Africa.

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2021 African Private Equity Industry Survey

Key findings:

LP Survey

  • 71% of LPs jointly view West Africa and North Africa as attractive regions for PE investment in Africa over the next three years.

  • Kenya, Egypt and Nigeria are viewed by the largest proportions of LPs as attractive countries for PE investment in Africa over the next three years.

  • Healthcare & Life Sciences, Financial Services and Technology respectively were viewed by the largest proportions of LPs as attractive sectors for PE investment in the next three years.

  • 58% of LPs believe that local capital flows will catalyse the PE industry in Africa.

  • 76% of LPs view limited exit opportunities as the biggest challenge for PE fund managers in Africa over the next three years.

  • 16% of LPs expect African PE returns to exceed 3.0x over the next ten years.

  • 65% of LPs believe the attractiveness of African PE remains unchanged following the global pandemic.

 

GP Survey

  • 77% of GPs view East Africa as an attractive region for PE investment over the next three years.

  • Kenya, Nigeria and South Africa are viewed by the biggest proportions of GPs as attractive regions for PE investment in Africa over the next three years.

  • Healthcare & Life Sciences, Technology and Agribusiness respectively were viewed by the largest proportions of GPs as attractive sectors for PE investment in the next three years.

  • 58% of GPs believe that international capital flows will catalyse the PE industry in Africa.

  • 67% of GPs jointly view the fundraising environment and limited exit opportunities as the biggest challenges for PE fund managers in Africa over the next three years.

  • 43% of GPs expect African PE returns to exceed 3.0x over the next ten years.

  • 48% of GPs believe the attractiveness of African PE remains unchanged following the global pandemic.

We look forward to hearing your thoughts

Read the 2021 African Private Equity Industry Survey
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