Business
Africa continues to be most attractive for Private Equity investment
For the fourth year in a row, Brazil leads among markets gaining new entrants, with 28 percent of investors planning to begin investing there in the next two years, followed by sub- Saharan Africa with 21 percent of investor interest.
The shift in private equity allocations towards emerging markets reflects persistent investor optimism about emerging markets’ ability to outperform developed markets, noted the survey.
However, the survey found that the year-on-year analysis shows that while private equity fundraising and deal volume are in fact down in the emerging markets, the 13 percent decline in emerging market fundraising is in the broader context of a continuing slowdown in private equity globally.
Emerging markets accounted for 17 percent of the total capital invested globally, up from 11 percent in 2011 and 13 percent in 2010.
Political risk emerged as the single greatest market-specific deterrent to investors in six of the 10 markets evaluated, and is most pronounced in the case of Russia, where 73 percent of investors ranked it as high risk, followed by sub-Saharan Africa, with 66 percent of investors ranking it as risky. – (The East African)
