Business
Private equity investors jostling to take advantage of growing opportunities in Africa
Merchant says their strategy is “to invest in equity where we think there is interest in strategic acquirers,” including other private equity funds.
“Ultimately the whole value chain needs to be filled. We see the larger funds as exit opportunities for us,” says Merchant.
These large funds are beginning to hover over the continent.
In August, Bloomberg reported that KKR & Co, one of the giants of US private equity, is recruiting an executive in London to focus on Africa.
Carlyle, another US private equity fund, is in the process of raising US$500 million for a fund to target sub-Saharan Africa.
In 2011, managers raised US$1.3 billion for the region, with another US$489 million raised in the first half of 2012, according to the Emerging Markets Private Equity Association.
After a dip in 2010, investments are also rising, with just more than US$1 billion invested in 2011 and another US$605 million invested in the first half of 2012
Source: The Africa Report
