Private Equity Sector Focus 2016
Although there has been a downward trend in activity over the past year, the consumer discretionary sector has continued to attract interest from investors, making up 22% of all transactions in 2015. A private equity sector focus of particular interest over the past few years has been online retail, education services such as tertiary...
Listed EV/EBITDA Multiples 2016
Following the volatility of listed multiples post the financial crisis, the developed, African and BRICS markets’ multiples appear to be moving much more closely in line with one another. Valuations of African markets have dipped marginally below the other markets through 2015 as a result of negative sentiment to emerging markets globally. African...
SA Private Equity records a decade of market outperformance
The latest RisCura-SAVCA South African Private Equity Performance Report, for the fourth quarter of 2015, shows that South African private equity outperformed the South African listed equity market over a ten, five-and three-year period to 31 December 2015. The report, which tracks a representative basket of private equity funds in South Africa,...
A big year for private equity fundraising in Africa
Despite the recent turmoil in which many African countries find themselves, global investors showed strong interest in investing in Africa’s real economy, as evidenced by the increase in private equity fund raising in 2015. Total value of Africa PE funding, by year of final close*, was US$ 4.3billion. This is according to Bright Africa, the...
Tough at the top
Size playing a significant role in the price of Africa private equity deals. Over 30% of reported Africa private equity (PE) transactions in 2014 and 2015 took place at greater than a 10x EBITDA multiple*, a strong increase over earlier periods. Between 2009 and 2013, for example, more than half of PE transactions took place...
Investability of Africa’s listed markets
Indices provided by data vendors are used by institutional investors as proxies for African markets by return (performance benchmarking), valuation, liquidity and diversification to assess Africa’s Listed Markets Investability. There are numerous choices as most are designed for a specific type of investor, as well as what their perceived idea...
Private equity multiples in Africa by sector
Multiples sector focus shows how both the consumer discretionary and consumer staples industries fetch the highest multiples across all sectors. The consumer sector has been identified time and time again as one of the most attractive areas for investment on the continent, due to the favourable demographics and the so-called ‘growing middle class’....
Listed EV/EBITDA multiples
Listed multiples across the Latin America (LatAm) and BRICS markets have moved in sync with developed markets in the last few years, with a clear upward trend. African markets have diverged since the beginning of 2015, creating a large disparity from multiples across the rest of the globe. Multiples in African markets have dropped significantly...
Regional fund and transaction size
In regions where the capital markets and private equity industry are more developed, companies and transactions are larger, supporting bigger funds. As a result, Southern African and Pan African funds continue to have the largest portion of funds over USD 200m. The management costs of a fund with continent-wide presence are much greater than a...
