Private Equity Africa Reports in Excess of $2billion in 2013 Reported Fund Closings


dividend-recap1Africa-focussed fundraisers have brought in excess of £2billion in reported closings for the period January – September 2013,  already exceeding 2012 full-year figures according to the latest figures based on data from Preqin, the alternative assets industry’s leading source of data and intelligence.

The report supplied exclusively to Private Equity Africa shows this year’s figures have been driven in part by strong closings reported by Ethos which announced its $800m fund closure at the beginning of 2013, Vital Capital which has brought in $350m for its maiden vehicle and Phatisa, which reported a $243 final close of its first fund.  A number of other smaller funds have also reached final close.

The figures only cover final closures, and exclude interim closings from some of the industry’s largest funds, including Carlyle, which has already exceeded its original target, and will touch $700m by year-end, according to Private Equity Africa research.  Figures also do not include Development Partners International, which has exceeded $400m in its first closing, and Amethis with a $290m first close during the year.

According to  Adeola Dosunmu, Head of Research at Private Equity Africa, “This year’s fundraising figures bring great warmth to the continents fundraising environment and demonstrates that improved LP sentiment for Africa is slowly translating to solid commitments. Signs of this growing sentiment were shown earlier this year when the Emerging Private Equity Association (EMPEA) placed Sub-Saharan Africa in its top tier for emerging markets, displacing traditional BRIC markets.”

Gail Mwamba, Managing Editor of Private Equity Africa said “Improved LP sentiment has also underpinned the launch of Abraaj’s $800 million Africa-focused vehicle which is twice the size of its predecessor. Expectations are that 2014 will be an even more positive year, with expected final closes from groups such as Carlyle.”

The fundraising figures published today coincide with Private Equity Africa’s maiden fundraising forum; to be hosted in London today. The first of its kind for the industry, the event aims help first time managers execute a successful fundraising strategy for Africa-focused funds.