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Private equity investments more than double in Southern Africa
[JOHANNESBURG] Private equity investments in southern Africa more than doubled to $31.3 billion rand(S$3.2 billion) in 2017 as the volume and value of deals increased.
The number of transactions rose to 750 from 574 in 2016, the Southern African Venture Capital and Private Equity Association(SAVCA) said in a report on Wednesday. The information was compiled following a survey done with Deloitte that spanned 80 funds focused on the region. The average deal size climbed 54 per cent to 41.7 million rand, it said.
The value of deals last year exceeded the 14.7 billion rand average over the past decade even after South Africa's economy, the most industrialized on the continent, contracted in the first quarter. Private equity firms raised 7.5 billion rand during the year, a decrease from the 10.2 billion rand they raised in 2016.
Funds under management increased to 158.6 billion rand, representing a compound annual growth rate of 9.4 per cent since SAVCA started compiling the data in 1999. The most popular sectors last year included retail, real estate, infrastructure, banks and insurance in countries that also included Lesotho, Swaziland, Namibia, Botswana, Zimbabwe and Mozambique.