Africa-focused Private Equity (PE) has developed impressively over the last two decades, in terms of volume, quality of transactions, and performance.
According to a joint research paper by the African Private Equity and Venture Capital Association and Ernst & Young, Africa’s PE strategic and operational improvement measures have returned 0.6x more than the MSCI Emerging Markets Index.
Currently, real estate investment funds are still at relative infancy compared to other sectors. Data provided by Preqin in October 2014 showed that there were about 8 unlisted real estate funds targeting $1.25 billion compared to 91 Africa-focused private equity funds.
Actis is credited with launching the first sub-Saharan African Private real estate fund (AARE 1) at $154 million, this was followed by the $165 million CAPIC fund by African Capital Alliance, which was established in February 2008.