Business
Value of private equity deals in Africa increased by 11% in 2012
Despite a drop in the number of private equity deals in Africa in 2012, the value of the deals increased.
The rise in value is attributed to the industry’s appetite for quality over quantity.
Data by Private Equity Africa, a funds deals monitor and Preqin, a research company focusing on funds indicates that the value of deals reported in 2012 was US$3.5 billion, an 11 percent increase from US$3.1 billion reported in 2011.
The number of private equity deals completed in 2012 was however lower at 32, from 39 announced the previous year. It was the fourth successive annual rise in aggregate deal value in Africa, according to preliminary Preqin data.
The business services sector took most of the deals accounting for 72 percent in value, and 30 percent in volume.
North Africa had the top deals in the sector, most notably the International Finance Corporation’s US$204 million investment in Morocco-based bank, Banque Centrale Populaire (BCP).
Food and agriculture was second taking up 24 percent of the deals reported. The top deals in this category included Carlyle’s US$210m Export Trading Group (ETG) deal, in partnership with Standard Chartered Private Equity (SCPE) and Pembani Remgro Infrastructure Managers.
