Search results for "private equity"

What are the funds changing the face of private equity in Africa?

What are the funds changing the face of private equity in Africa?

Among the most important private equity players are public companies, which often base their investment decisions on considerations other than pure profit

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Why Africa is the new hotbed for private equity

Why Africa is the new hotbed for private equity

Private equity investment into Africa, and fund managers’ ability to raise capital for funds dedicated to the continent, are both trending strongly upward.

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Local knowledge and value-chain approach essential to Africa private equity success

Africa’s enormous growth potential is now an open secret with the International Monetary Fund (IMF) predicting that by 2015 seven out of the top 10 fastest growing economies will be in the region.

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Zambian Annual Budget Discussion Breakfast

Industry Survey indicates growing investor demand for private equity

The 2014 KPMG and SAVCA (Southern African Venture Capital and Private Equity Association) Venture Capital and Private Equity Industry Performance Survey indicates increasing investor appetite for private equity

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#LWOL: A discussion with Yunus Suleman on the impact of Africa’s Education system on our society and corporate environment

Mkoba Private Equity Fund will support African SMEs

Last month saw the launch of the Mkoba Private Equity Fund in Dar es Salaam, Tanzania. The fund, with its target size of $300 million, seeks to support SMEs in various African nations, believing this to be an under-resourced sector that is crucial to the continued growth of African economies.

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The Emergence of the Africa 8

Private Equity Investment in Africa

An infographic on private equity investment by AFDB in Africa

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Significant developments in private equity interest in Nigeria and Kenya

Private equity is a vital facet of sustainable development – serving as a mechanism to allow businesses to establish themselves, and to expand. Private equity funds enhance that effect through collective investment, in areas related to private equity: venture or growth capital, distressed investments, leverage buyouts, or mezzanine capital.

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Private equity in Sub-Saharan Africa

The private equity industry in Sub-Saharan Africa is climbing to unprecedented levels. The core reason for this is rapid economic growth in many African nations, but also of significance are the facts that there is presently little or no commercial and consumer lending markets in the subcontinent, banks perceiving the risks as too high, and interest rates from lending institutions tend to be cripplingly inflated.

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Nigeria-Ghana trade connection to increase

Private equity investment in Mozambique: a time for dramatic growth

Mozambique continues to experience dramatic economic growth rates, with gross domestic product (GDP) growth in 2012 estimated at 7.5%, and projected growth in 2013 and 2014 estimated at over 8%. Nevertheless, Mozambique remains extremely poor and underdeveloped, struggling to translate that robust economic growth into prosperity for its populace.

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Could Bitcoin Find a Home in Africa?

Private Equity in Africa: A Private Passion

As African nations march towards more formal, regulated economies, private equity is determined to play more than just a walk-on part. But there is still much to learn about doing business in this diverse region.

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Raising private equity capital in Africa

Many foreign companies, from multinationals to family businesses, are looking towards Africa and its strong growth curve with a mind to investing, and the Private Equity (PE) route, in its infancy everywhere save for South Africa, is proving very attractive

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Could Bitcoin Find a Home in Africa?

Africa leads the way in private equity investment

  Private equity offers investors the chance to get a firm foothold in Africa’s economy. This is especially true for the fast-growing consumer market which is expanding in line with a number of sectors, including fast-moving consumer goods, agriculture, mobile […]

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How To Get Private Equity Exits in Africa Right

Private equity (PE) as an asset class has received reasonable prominence in Africa in recent times. New records are being set both at the levels of fund raising and sector diversity of investments. Africa is becoming increasingly investor-friendly!

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The promise and obstacles facing private equity investment in Africa

The promise and obstacles facing private equity investment in Africa

Private equity investment might provide some exciting opportunities for your business, but it also comes with a number of challenges. Private equity is capital that is put into a new or growing business in return for part ownership of the business and a share of its profits. Private equity investors don’t typically want to be permanently involved in a business – they will step in for a few years and then exit by selling back their shares to the business, along with a return investment.

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Attracting Private Equity and Venture Capital: Growth, Performance & Succession Policy

Attracting Private Equity and Venture Capital: Growth, Performance & Succession Policy

Growth, whether organic or inorganic (expansion by mergers and acquisitions), is often the most important driver of value. The main challenge management face in achieving ambitious targets is to assess the most optimal funding structure suitable for their company. There are several funding options available in our markets, these can be primarily categorized into debt and equity.

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What does it take to attract Private Equity and Venture Capital for growth?

What does it take to attract Private Equity and Venture Capital for growth?

Seven of the world’s ten fastest growing economies are in Africa, 52 African cities have populations of over 1 million people and by 2040 it is expected that 1.1 billion Africans will be of working age. Africa has 60% of the world’s uncultivated, arable land; 56.7% of the world’s diamond (gemstone) production, 66% of the worlds’ cocoa production, 10% of the world’s oil reserves, 80-90% of the world’s platinum group metal reserves and 40% of the world’s gold reserves.

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African private equity funds outperformed US venture capital over last decade

A new index of institutional-quality private equity funds in Africa posted an 11.2% annualised return for the 10 years ending 30 September 2012.

This is the first quarterly report of a new African private equity and venture capital index, a collaboration between the African Venture Capital Association (AVCA) and Cambridge Associates.

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Africa boasts alpha returns for private equity investments

Africa’s private equity (PE) landscape is uncharted and at an early stage of development, however, it is growing steadily and giving good returns. In fact, according to a KPMG survey, a record amount of 25.7 billion rand ($3.03 billion) in PE money from Africa was returned to investors in 2011, up from R18.1 billion in 2010.

According to Dapo Okubadejo, the partner in charge of Corporate Finance & Financial Advisory Services at KPMG Nigeria:

“Africa is now viewed by PE houses and fund managers as a priority investment destination. As growth in other economies have slowed in recent years due to the 2008/9 recession and current crisis in the Eurozone, investors have been looking to emerging markets and economies that will provide higher return rates and Africa is continuously proving its business case for investment.”

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Ways private equity firms can genuinely add value

As previously highlighted, private equity returns continue to outstrip quoted shares and it is certain that operational improvement in portfolio companies is a key component of value creation. Of our sample, 63% had been involved with a private equity-backed business which was subsequently sold and, of these, 77% had been sold for a profit.

According to the survey, the most important contributors to the value uplift were operational improvements and sales growth. Leverage and growth through acquisitions were much less important; highlighting perhaps the reality of the more difficult funding climate.

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http://www.blog.kpmgafrica.com/wp-content/uploads/2014/09/2014-CFO-Survey-Report.compressed-1.pdf

The role of the chairman in private equity-backed companies

The survey research suggests the appointment of an effective chairman can make a significant contribution to the business through, among other things, ensuring the relationship between private equity and management remains collaborative.

The research revealed that 78% of respondents felt that the aim of private equity backers and management was well aligned at the start, but for close to one-third of our sample, the relationship worsened over time. Reasons given were usually related to private equity backers being unclear or changing their minds about the strategy for the business.

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Africa Brief: Taste for pizza takes off in Africa and more...

The role of operating partners in private equity-backed companies

As you would expect, operating partners need to have relevant senior managerial and sector expertise as well as strong interpersonal skills. Further, if they are really plugged into the private equity firm and have built up a mutual understanding through working together over time, this can make a real difference in the efficiency of how decisions are made.

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Private equity executives and operational or industry sector experience

The results of our research show a high degree of consensus on this topic, with private equity directors’ lack of operational or management experience seen as a weakness in the way they interact with portfolio companies. Over 70% of those interviewed said that having managerial, operational or sector experience would give private equity executives more insight into the reality of running a business and a greater empathy with management.

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Working with Private Equity portfolio companies: A survey

In mid-2012, KPMG and Directorbank commissioned independent research consultancy Private Equity Research Limited to undertake a comprehensive survey of more than 300 non-executive directors and senior management who had experience of working with private equity firms.The purpose was to look in depth at how private equity executives interact with their portfolio companies and reveal the strengths of the private equity approach, as well as the weaknesses.

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Private Equity remains steady

SA’s private equity sector last year shrugged off the global economic uncertainty with funds under management topping a record R115bn, including uncommitted funds of more than R34bn, KPMG said yesterday.

While the sector attracted investors seeking exposure to emerging markets, an executive at KPMG said other sub-Saharan African markets besides SA were drawing global private equity funds to regional opportunities.

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Follow-on deals exceed new private equity investments – survey

While the number of private equity deals declined from 547 to 521 last year, the value of investments increased by 32.2% to R15.6-billion, the latest KPMG and Southern African Venture Capital Association (Savca) venture capital and private equity industry performance survey showed on Tuesday. Of the R15.6-billion invested, R8.6-billion went into follow-on investments, with the remaining R7-billion targeting new investments.

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Private equity in SA tops R115bn

SA’s private equity sector last year shrugged off the global economic uncertainty with funds under management topping a record R115bn, including uncommitted funds of more than R34bn, KPMG said yesterday.

While the sector attracted investors seeking exposure to emerging markets, an executive at KPMG said other sub-Saharan African markets besides SA were drawing global private equity funds to regional opportunities.

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Africa Brief: Africa must join hands in fighting red tape, Nigeria hands power to private buyers and more…

If African countries do not work together to resolve impediments such as bureaucratic red tape and lack of infrastructure, growth will continue to be constrained, Shoprite Holding’s chairman Christo Wiese said. The search for higher yield has consumer-facing players turning their attention to Africa as the next hot ticket.

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The importance of SMEs in growing inclusive growth in Africa

The importance of SMEs in growing inclusive growth in Africa

Inclusive economic growth is growth that leads to job creation, causing a ripple effect on the purchasing power of the majority of the populace. The private sector, and in particular small and medium enterprises (SMEs), are the drivers of an economy. SMEs are also the largest providers of direct employment and inclusive growth can be achieved through promotion of policies that would drive their development.

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African Potential: 
unleashed or unfulfilled?

African Potential: 
unleashed or unfulfilled?

A strong manufacturing sector can help Africa’s emerging economies escape the poverty trap and build sustainable growth. With a billion people spread across 54 diverse nations, and rich natural and agricultural resources, Africa is often described as the last true frontier for economic development.

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South Africa, Morocco & Mauritius top PE countries in Africa

South Africa, Morocco & Mauritius top PE countries in Africa

South Africa was the most active market for PE investment on the continent in H1 2012 with South African targets attracting $547m over the period.

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