Some of the Heads of the East African Community at a past summit. Kenya
will be among the key beneficiaries of an estimated Sh17 billion new
private equity fund that will be launched in several African countries
in the next 18 months. PHOTO | FILE
By NATION CORRESPONDENT
Private Equity Investors
In Summary
- “East Africa will get a broader allocation out of this Sh17 billion million deployment,” said the managing director of PineBridge Private Funds Group in the world Steven Constabile
Kenya will be among the key beneficiaries of an
estimated Sh17 billion new private equity fund that will be launched in
several African countries in the next 18 months.
PineBridge Private Equity Fund will launch the
financing as it also seeks to make Nairobi one of its key operating base
for sub-Sahara operations in addition to Johannesburg, South Africa.
The money will act as a fund of funds, whereby
PineBrdige Private Equity will work with other regional-based private
equity firms to invest the cash on its behalf.
The intention is to leverage on the expertise that
each of the private equity fund managers has. The company will target a
return of 25 per cent for every investment made.
Broader allocation
“East Africa will get a broader allocation out of
this Sh17 billion million deployment,” said the managing director of
PineBridge Private Funds Group in the world Steven Constabile.
Kenya having the most vibrant financial sector in
the region is expected to benefit from much of the new fund’s allocation
for East Africa.
The move by PineBridge is part of increasing trend
where New York and Washington based funds are now looking more to
Africa to provide better returns for their investors. The returns from
European, South America, China and the greater Asia star markets have
now dwindled driving attention to Africa.
The continent is benefiting on the money from
these markets and the fact that Americans want to get a piece of the
Africa’s growing pie, now dominated by China.
According to Emerging Markets Private Equity
Association, Africa is poised to see the greatest increase in new
private-equity commitments across the emerging markets over the next two
years, edging out Brazil, China and India as the most attractive
destination for deal making.
Outperforming US
A new index by Cambridge Associates and the
African Venture Capital Association shows that institutional-quality
private equity funds in Africa posted a 11.2 per cent annualised return
for the 10 years ending September 30, 2012, outperforming US venture
capital.
“Sub-Sahara Africa offers greatest growth
opportunity for our global clients. There are adequate opportunities and
expertise to realise that return,” said Constabile.
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