Broadening Horizons: How do Private Equity Investors Create Value?

This is the second of our annual studies of how private equity (PE) investors create value in Africa. In our inaugural report, we countered popular opinion about PE in Africa to prove that the industry was making excellent progress in exiting its portfolio companies. We also provided evidence of genuine value creation by PE firms in the region through hands-on involvement in the companies they back.

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Broadening Horizons: How do Private Equity Investors Create Value?

Key findings:

  • 207 Exits fully realized by PE firms in Africa from 2007 to 2013

  • 46% Exits in Africa that had an entry enterprise value of US$10m or less

  • +33% Entry multiples for PE deals completed from 2005 onward versus pre-2005

  • +90% Relative performance of exits with an entry EV of US$30m–US$75m versus US$1m-US$10m

  • 49% Impact of sector expansion on organic revenue growth

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