African Private-Equity Deals Shrink as Funds Reach Record Closes

The value of private-equity transactions in Africa tumbled to the lowest level in three years in 2015 as the number of deals over $250 million shrank.

Overall deals dropped to $2.5 billion from a record $8.1 billion in 2014, the London-based African Private Equity and Venture Capital Association said on its website. West Africa’s portion of transactions remained stable at 25 percent, while South Africa’s decreased to 15 percent from 24 percent.

Private-equity funds raised $4.3 billion in 2015, the highest since at least 2010, and compared with $1.9 billion in 2014, after “a handful of large funds” had final closes during the year, the association said. “As such, 2016 is likely to see lower fundraising totals.”

Private-equity investments will probably remain targeted at consumer-driven industries, while other sectors such as infrastructure, real estate and energy may also attract interest, it said. “West and East Africa should continue to remain attractive destinations for private-equity investment on the continent,” the association said.

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