April 18, 2016: Andrew Brown, ECP Managing Director and CIO, recently spoke to AltAssets about the exit environment for private equity-backed African companies, highlighting how recent developments in the continent’s equity capital markets could increase optimism regarding private equity players’ ability to exit investments through listings. Over the next few years Mr. Brown predicts an increase in exits via IPOs with some of the larger listings taking place in Paris or London.
According to a 2015 report by PwC, the number of offers on African equity capital markets increased by 40 percent in 2014 over the previous year. The value of the capital the deals raised increased by 100 percent over the same time period.
Mr. Brown noted that for private equity firms operating in Africa, the scarcest resource is strong, on-the-ground management teams able to identify investment opportunities. ECP’s approach of having dedicated investment personnel throughout the continent allows the firm to identify investment opportunities and to work with these companies to leverage their growth potential. Finding and bringing such companies to market creates a scarcity value, which public market investors recognize.
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