WATCH: Private Equity in the doldrums

Despite attractively priced assets, the declining lure of remaining listed, and a swift bounce back from Covid-19, private equity suffered its annus horribilis in 2021.

Private equity investments totalled R14.9bn in 2021, a marginal increase from R14.5bn in 2020. But the number of deals was still the lowest since 2011, and the value is less than half of what the local industry attracted at its peak in 2018.

Fundraising remains tough for SA private equity general partners, as evidenced by the latest Southern Africa Venture Capital and Private Equity (Savca) survey, which shows that funds under management increased by 5.6% to R206.2bn, down from a 5.8% increase in 2020.

Michael Avery is joined by Langa Madonko, investment principal at Summit Africa and Savca board member; Siya Nhlumayo, partner at Vuna Partners; and Phathutshedzo Mabogo, acting chief investment officer of the Eskom Pension and Provident Fund