Private equity multiples in Africa cost of equity
Risk versus reward is the key determinant of investment activity. Cost of equity is representative of the investor’s evaluation of the risk that the enterprise is exposed to. Elevated cost of equity and limited availability of capital created headwinds for many African countries during 2016. In the current year, this appears to be easing, with...
Private equity multiples in Africa by deal size
There is a clear relationship between the transaction size and the EV/EBITDA multiple used to price the investment. Higher priced transactions tend to take place at the larger end of the spectrum, in this case in the category of companies with Enterprise Value greater than USD 250m. At an Enterprise Value of less than USD...
Private equity fundraising over time
test_The increase in private equity fundraising in 2015 is evidence of the strong interest in investing in Africa’s real economy, despite the recent turmoil in which many African countries find themselves. In the face of the decline in commodity prices, oil in particular, currencies have come under strain impacting liquidity and trade. The slowdown...
Should pension funds be financing infrastructure in Africa?
Africa’s infrastructure backlog is well-documented, with the World Bank placing it at an annual value of approximately US$93 billion a year. Globally, infrastructure is increasingly being considered as an accepted asset class within a number of pension plans’ investment policy statements. While acceptance is slow, it is growing. The OECD Annual...
Retirement industry moves toward a Cradle to Grave approach
In an industry-changing move, the amended Pension Fund Act regulations come into effect on 1 September 2017 bringing about welcomed reforms. But, implementation could pose challenges for trustee boards that are already grappling with limited governance bandwidth. The amendments, also known as the Retirement Funds Default Regulations, have been in the...
Rethinking retirement – why not take the bus?
As people the world over live longer, healthier lives the debate around the design and funding of pension fund schemes shows no sign of subsiding, writes RisCura’s Investment Research Analyst, Fran Troskie. In 2014, then-UK Pensions Minister, Steve Webb, (in)famously advised pensioners to buy Lamborghinis. Despite the uproar at the time, his intention...
Analyst (Risk & Performance) Part Time
Part-time contract with possibility of extending...
Private Equity Multiples in Africa Over Time
Median EV/EBITDA multiples of listed equity in Africa have trended downward since the end of 2013. Conversely, median private equity multiples have steadily increased. There is a convergence of private equity and listed equity multiples at around 8x EV/EBITDA. A similar trend was observed after the GFC in the US, where a flight to quality...
