Private Equity Fundraising in Africa

by Adam Counihan

  • 10 May 2010
  • PE

Preqin data shows that there are 71 Africa-focused funds currently on the road, attempting to raise an aggregate of USD 24.9 billion in capital commitments. Expansion funds are the most numerous type of fund accounting for 16 out of the 71 funds on the road and targeting a total of USD 4.3 billion. However, it is Africa-focused buyout funds that are targeting the largest percentage of capital commitments (28%), with 13 funds aiming to raise USD 6.9 billion.

Although there are several larger funds where Africa is one of the areas in which they intend to invest, the largest purely Africa-focused fund currently raising is the African Agricultural Land Fund which is targeting an aggregate of USD 2.6 billion. This buyout fund is a product of a partnership between Emergent Asset Management, a UK-based firm, and Grainvest, a firm of professional agricultural traders and one of the top five participants on the South African Securities Exchange.

Data from Preqin’s Funds in Market product reveals that South Africa-based fund managers are responsible for raising the majority of funds in which there is an African geographic focus. At the moment, 11 of the Africa-focused private equity funds currently raising are being managed by South African-based fund managers and are targeting an aggregate of USD 3.9 billion in capital commitments. In terms of capital commitments, UK-based fund managers are in the process of raising the most capital to be invested in the area with USD 4.8 billion being sought by a total of 7 funds at present. Another notable presence in the market at the moment are US-based funds who are currently raising 10 vehicles and seeking USD 4.4 billion in capital to invest in Africa.

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