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Private Equity Exits in Africa


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Private Equity Exits in Africa

  1. 1. Private  Equity   Exits  in  Africa   Sponsored  by:    
  2. 2. Based  on  Privcap’s  exclusive  report  
  3. 3. In  this  slideshow:   • Typical  and  attractive  exits  in  Africa • Forms  of  investment  realizations • Minority  ownership  maintenance • Sizing  up  Africa’s  largest  markets Informed  by  EY  and  AVCA’s  2013  African  Exits  
  4. 4. African  PE  has  a  strong  history  of  exits   Watch  video  |  Read  full  report   Share  this  slideshow   “The  exit  is  a  reality  in  Africa,   especially  in  North  and  South   Africa  but  also  in  the  sub-­‐Saharan   region—and  the  returns  are  also   there.  If  I  go  back  to  pre-­‐2006,   our  average  multiple  was  around   1.7.  Afterward  it  was  around  2.5.”   -­‐Ziad  Oueslati  of  AfricInvest-­‐TunInvest  Group  
  5. 5. Trade  sales  are  the  predominant  form   of  investment  realization   Watch  video  |  Read  full  report   Share  this  slideshow   A  recent  study  of  African  exits  by  EY   and  the  Africa  Venture  Capital   Association  con[irmed  that  data.   Trade  buyers  accounted  for  half  of   all  exits  from  2007  to  2012.  The   study  further  revealed  that  regional   trade  buyers  are  a  growing  force.   Between  2010  and  2012,  sales  to   regional  trade  buyers  accounted  for   half  of  all  sales  to  trade  buyers.   That’s  up  from  the  2007–2009   period,  when  local  trade  buyers  were   more  dominant.  
  6. 6. Basic  governance  improvements  can   transform  African  businesses   Watch  video  |  Read  full  report   Share  this  slideshow   “We  see  a  lot  of  the  private  buyouts.   It’s  typically  family-­‐owned  businesses   that  need  to  be  transformed  into  a   corporation.  So  a  lot  of  the  value-­‐add   done  by  private  equity  is  putting  in   place  governance  in  running  the   companies.”   -­‐Sandile  Hlophe,  EY  
  7. 7. Minority  ownership  requires  constant   communication  and  guidance   Watch  video  |  Read  full  report   Share  this  slideshow   It’s  more  dif[icult  for  a  private   equity  [irm  with  a  minority   stake  to  exert  in[luence  and   impose  governance  on  a   portfolio  company.  Often  it’s   impossible.  
  8. 8. Capturing  consumer  growth  means   attractive  exits  to  strategics   Watch  video  |  Read  full  report   Share  this  slideshow   “The  middle  class  is  growing,  and  the   internaConal  investors  know  that  the   consumer  story  in  Africa  is  a  real  story,   because  middle-­‐class  growth  is  sCll  in   the  beginning  and  it’s  going  to   conCnue.”   -­‐Ngalaah  Chuphi,  Ethos  Private  Equity  
  9. 9. For  more  private  equity  video   interviews,  special  reports  and   commentary,  visit   Share  this  slideshow