Private Equity Firms Based in Africa

by Lola Aboderin

  • 14 Apr 2010
  • PE

Preqin research shows that there are currently over 80 private equity firms headquartered on the African continent. Such firms adopt strategies ranging from buyout to natural resources and all stages of venture. Collectively over the past 10 years, they have raised over USD 10 billion in private equity capital commitments.

According to Preqin’s Fund Manager Profiles database, the majority (59%) of Africa-based private equity firms are headquartered in South Africa. Egypt is home to 9% of all private equity firms headquartered in Africa, with buyouts forming the core private equity strategy across the majority of these firms. Conversely, venture capital is the most favoured investment strategy in Mauritius, where 7% of all private equity firms headquartered in Africa are domiciled. Morocco and Nigeria account for 6% and 5% of all Africa-based private equity firms respectively, while the remainder (14%) reside elsewhere in Africa.

Citadel Capital is a leading African private equity firm having raised over USD 1 billion in aggregate capital. Founded in 2004, the firm typically acquires controlling stakes in companies in the Middle East and Africa. Its most recent fund, Africa Joint Investment Fund, is targeting USD 250 million for private equity investment in North and East African countries.

Prominent South African headquartered private equity firms, Pamodzi Investment, Brait Private Equity, Ethos Private Equity and Absa Capital Private Equity, have raised an average of over USD 900 million in private equity capital commitments during the past 10 years. African Capital Alliance, a prominent West African private equity firm, has successfully invested in Nigeria over the past 10 years through three private equity fund vehicles, including one private real estate fund.

For more information on private equity fund managers on a global basis, please see Preqin's Fund Manager Profiles.

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