While there’s been a slowdown in the number of private equities exit around the world. One continent remains standing out, African Markets. A report by Boston Consulting Group (BCG) in 2024 showed that Private Equity Leverage Buyouts were way too high compared to the global averages in both volume and values, rising by 116% and 46%, respectively, a comparison between the years 2016-2019 and 2020-2023. However, assets under management (AUM) remain unexploited with a percentage of less than 1% of the gross domestic product, on the other global averages were between 5% and 7%, bringing out a full potential picture of Africa’s growth.
A Private equity (PE) firm is an investment management company that raises capital from investors to buy and improve private companies, or take companies private, with the goal of selling them later for a profit. These firms majorly invest in not publicly traded companies on the financial markets especially in the securities. The investment capital comes from well-established investors like pension funds and wealthy individuals, and not the general public. PE firms improve companies by implementing operational changes such as mergers with portfolio companies and restructuring through cost saving methods and bringing in new efficiencies.
Major PE firms deals in 2025 across the continents include Helios Fund V. This is private equity fund managed by Helios Investment Partners and invests in mid-sized companies across Africa and it, received USD25.0 mn investment from German development financier DEG. To provide private credit to mid-market companies across sub-Saharan Africa, Enko Capital has made the first close of its Enko Impact Credit Fund, raising USD 100.0 mn, from IFC (International Finance Corporation), BII (British International Investments) and SICOM Global Fund. In October, Adenia Partners, a Mauritius-based PE firm, acquired Africa’s leading insurance brokerage, Minet. Tanmiya Capital Ventures Fund II, a PE vehicle investing in Egypt’s private sector, is set to receive USD38.0 mn commitment from the European Investment Bank (EIB). Catalyst Fund’s new USD40.0 mn vehicle backing early-stage climate tech startups across Africa has received a USD6.0 mn commitment from IFC. ALCB fund, managed by Cygnum Capital, to Hivos-Triodos Fonds as well as Airnergize Capital Fund managed by New GX Capital all this show the growing number of PE firms across Africa.
What next Kenya? For the Kenyan economy to attract more private equity firms there’s need for the country to stabilize the Kenyan shilling against the international currencies. Currency fluctuations have been seen to erode the PE firms’ profits thus turning away investors, Capital is a coward you know! Africa Continental Free Trading Zone is the right step towards opening the African economy to cross-bounder investments, it’s excepted to catalyze the economy by 32% by 2025, a report by Boston Consulting Group.
Private equity firms in Africa is more than a financial opportunity, rather an opportunity to create impact on Africa’s potential transformative, and high-growth opportunities to achieve returns.
