Private equity managers invest a record R31bn
Survey finds investments in 2017 at R31.1bn and nearly 30% went to early stage businesses
Political turmoil did not deter Southern Africa’s private equity managers in 2017, which invested a record R31.1bn, according to a survey published this week. That compared with an annual average of R14.7bn over the preceding 10 years, the Southern Africa Venture Capital and Private Equity Association’s (Savca’s) annual private equity survey finds. New investments, as opposed to follow-on investments, accounted for 60% of the total, or R18.9bn. This was surpassed only once in 16 years, by a record R24.7bn in 2007. The retail, services and real estate sectors claimed more than 50% of investments made in 2017. Increased private equity activity, which refers to investments into private, rather than listed, companies, bodes well for economic growth. Private equity contributed to the creation of up to 5,600 new businesses in Europe annually, a 2013 report by Savca’s European equivalent found. The Savca survey, which was sent to 141 funds with investments in Southern Africa, represents 80...
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