Africa private equity funds achieved a final close of $1.1 trillion, of this year as investors’ appetite for African real estate deals continued to grow.
The first bi-yearly African Private Equity (PE) Data Tracker report from The African Private Equity and Venture Capital Association (AVCA) showed that Africa private equity funds achieved final close of $1.1 trillion or about N500 trillion in first half 2016.
The report showed continued incremental investment in African private equity with buoyant deal activity and investor appetite for real estate in Africa.
The total value of private equity deals in Africa during the first half of 2016 reached $0.9 billion, comprising of 83 reported transactions, which remained steady when compared with recent years.
The fundraising total showed a growing appetite for private equity investment in real estate. Of the total $1.1 billion private equity fund closures in first half 2016, 46 per cent were dedicated exclusively to real estate opportunities.
Manager, research and training, African Private Equity and Venture Capital Association (AVCA), Ponmile Osibo, said the report showed resilience of African investment horizon in spite of the challenges. “We have seen real estate emerge as a key sector attracting investor interest, adding another channel for private equity investment in Africa. Overall, we see positive signs that investors continue to close deals boosting local economies by injecting capital and driving job creation on the continent,” Osibo said.
