《2016 04 24 EY_Africa_Study_2016_Final》.pdf

Harvesting growth How do private equity investors create value? A joint study of private equity exits in Africa by AVCA and Ernst Young Contents 01 Foreword by African Venture Capital Association 02 Executive summary Key findings 03 PE exit activity and performance 07 Buying well: local networks are key 10 Growing companies well: ESG improvements drive growth 13 Realizing value: strategic buyers are a vital exit route 16 Outlook 19 About the study 20 Contacts In many regions of Africa, there’s a long history of producing coffee and this is a key export for many countries. This photo shows an image of roasting coffee beans. III Dynamic growth: value creation in Africa Foreword We are honored to have partnered with Ernst Young on this first study of private equity exits across Africa. This collaboration with Ernst Young represents a pivotal step in addressing the need for credible data on the African private equity and venture capital landscape. This research will provide investors with key information on how fund managers create value, deliver commercial returns and, more importantly, debunk common myths about exits in Africa. Africa is taking center stage on the back of exceptional economic growth, a rising middle class and relative political stability — themes that make the continent an increasingly attractive investment destination. Our industry, which provides development capital to private companies, is uniquely positioned to further support the growth of African economies. We are profoundly grateful to our members and other