East Africa Records 51 Private Equity Exits in a Decade 🚀🚀
East Africa has witnessed 51 private equity exits in the past decade, with 478 deals and $8.6 billion in investments. In FY 2022, exit activity surged to the highest levels in ten years. Financial services led with 14 exits, followed by healthcare and energy. Kenya led with 36 exits, followed by Uganda (8) and Rwanda (3). Tanzania and Ethiopia recorded 2 and 1 exit, respectively.
📈 Projections indicate 2023 will surpass this performance as past investments mature. These exits are vital for first-time fund managers seeking follow-on funds from development finance institutions (DFIs).
🔍 EAVCA notes that the actual exit numbers may be higher due to undisclosed exits and forced liquidations.
🏭 Private equity investors typically exit via trade sales, secondary buyouts, and management buyouts (MBOs). Secondary buyouts are on the rise, driven by loosened restrictions and increased funds executing majority transactions.
🔄 The complexity of private equity exits involves factors like timing, financial engineering, regulatory compliance, and negotiation. These challenges make private equity exits a hot topic in East Africa's investment landscape.
#PrivateEquity #EastAfricaInvestments #InvestmentExits
Read more on TechCabal
