Venture Capital index reveals that African private equity funds outperformed US venture capital

Private equity funds in Africa posted an 11.2 percent annualized return for the past 10 years ending September 30, 2012. African private equity funds have outperformed U.S. Venture capital in the same period.

This was revealed by private investment global monitor Cambridge Associates and the African Venture Capital Association (AVCA).

The Cambridge Associates LLC African Private Equity and Venture Capital Index which was launched Tuesday at the AVCA 10th Annual conference in Cape Town further revealed that African private equity has performed in line with or ahead of Asian and Latin American private equity.

The African Private Equity and Venture Capital Index comprises 40 institutional-quality private equity and venture capital funds based in Africa that invest third-party limited partner capital. The benchmark excludes captive funds, real estate funds and funds with open-ended structures.

The total fund capitalization is US$7.3 billion, and the vintage years covered are 1995 to 2012. The 40 funds include investments in more than 350 companies headquartered in more than 25 African countries, as well as a small number of Africa-focused companies headquartered outside the continent.

Read more: Ventures Africa