March 11, 2016: In a recent interview with Private Equity International (PEI), Vincent Le Guennou, ECP’s Co-CEO and Founding Partner, discussed how a strong fundraising environment in 2015 should lead to strong deal flow in 2016. Mr. Le Guennou suggested that the pace of investment in Africa is likely to be brisk as managers put to work the capital that has been raised.
He also addressed the volatility in oil and commodity prices and how this affects the investment landscape in Africa. He pointed out that while the oil price fall has had negative impacts on oil-exporting countries it has also had positive impacts on net oil importers. For ECP, which runs a truly Pan-African fund, the key to mitigating this volatility is to ensure that a fund’s geographic footprint is wide.
Mr. Le Guennou also noted that ECP considers investments on a regional basis. In Francophone West Africa, for example, the region’s single currency, one central bank, and one regional stock exchange have simplified the process of building out platform investments across fellow member states with a combined 80 million inhabitants, allowing for both diversification and economies of scale.
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