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Op-Ed: Why Investors Should Consider A “Private Equity Approach” To Africa

Capital Markets in Africa

Managing director Martin White and senior investment director Nicolas Schellenberg explain that private equity is a viable option for global investors who are searching for yield and have turned to African frontier markets. Africa reflects a global trend identified by Cambridge Associates’ research in that private markets have markedly outperformed public markets in the long-term. Comparing public and private markets over 10 years (to September 2016), African private equity returns “have outperformed Emerging Market public investments by more than an annualised 270 basis points—a big difference.”

White and Schellenberg  believe Africa offers investors significant opportunities in their search for alpha and the trajectory looks promising, taking into account potential challenges with foreign exchange volatility, the young African private equity industry, and the regional economy.

Read the full article here and view the full March 2017 Capital Markets in Africa publication here.