Preqin data shows that from 2000 to present, USD 40.5 billion in capital has been raised by fund managers focused on investment in Africa. Of all Africa-focused private equity funds to close since 2000, buyout funds contributed the most in terms of aggregate capital raised, collecting USD 12.4 billion in investor commitments.
Interest and participation in the region’s private equity industry has developed since 2000, when two funds garnered commitments of only USD 60 million. 41 funds focussed on the region collected USD 14.2 billion in 2007, which remains the highest level of both capital collected and number of funds raised to date. Commitments to Africa-focused private equity vehicles did briefly slow in 2008 and 2009 with aggregate capital of USD 8.5 billion and USD 4.0 billion respectively. However, the level of capital collected in 2008 is still only bettered by the pre-crisis levels of 2007, showing the region was still attractive to investors and fund managers alike in such difficult global circumstances. In 2010 to date, 10 Africa-focused funds have closed with an aggregate USD 2.7 billion in capital.
Data from Preqin’s funds in market product reveals that South Africa-based fund managers have raised the largest number of Africa-focussed private equity vehicles, with 58 closed funds in the period 2000-present having collected USD 8.4 billion in capital commitments. In terms of aggregate capital, US-based funds with Africa as part of their geographical preferences have collected the most capital, having raised a total of USD 9 billion. Looking at funds currently raising capital we see a similar trend emerge with Preqin data showing that both US and South Africa-based fund managers are raising 15 funds with respective target capital of USD 7.3 billion and USD 3.7 billion.
The largest fund currently seeking capital is African Infrastructure Investment Fund II. This fund, from African Infrastructure Investment Managers, is currently on the road with a target size of USD 1 billion. The fund is an unlisted infrastructure fund targeting investment in unlisted equity and equity-like investments in infrastructure in Africa, with a focus on sub-Saharan Africa. The fund will aim to make investments in which it can exercise significant influence, with the aim of delivering moderate capital growth and sustainable return over the long term.
For more information on private equity fundraising, please see Preqin's Funds in Market product.