East Africa’s share of private equity transactions on the continent has been rising steadily over the past few years.
A growing number of private equity funds are opening offices and looking to invest in high growth SMEs.
Competition for deals is heating up, with a mix of locally-based and foreign funds, as well as strategic investors, such as multinationals, all looking for investment opportunities.
“The market is very competitive [because] you have three different groups looking at the same target companies,” says Sheel Gill, head of transactions and restructuring at KPMG Kenya.
“There are a lot of opportunities, but it is taking very long to close deals. A lot of times you start talking to the target company and you try to prepare them for a transaction – and that typically tends to take close to about a year to 18 months. I genuinely feel that it’s taking too long to close deals.”