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Private Equity Industry Survey reflects 17% increase in funds
The 2013 Private Equity Industry Survey, which aims to provide private equity stakeholders a greater understanding of the industry, as well as the current trends, was recently released. AfrAsia Bank, in partnership with Southern African Venture Capital and Private Equity Association (SAVCA) and KMPG, co-hosted the event.
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The survey focused on the 2013 calendar year, and reflected a 17% increase of funds under management with the current total of funds sitting at R162.2bn as of 31 December 2013. Interestingly, half of the 2013 investments were channelled into infrastructure.
The survey also analysed private equity BEE investments in 2013. The last year showed a significant increase in the overall value and size of the deals, increasing from R108bn to R140bn.
It is important to note that a significant portion of private equity funds are sourced from outside of Africa, contributing towards the much-needed foreign direct investment that is needed in South Africa as well as the rest of Africa.
Since the first publication of the survey, the compounded annual growth rate of funds under management has been 11.8% (excluding undrawn commitments).
Dramatic change needed
With education and economic development a prominent factor, the general consensus was held on the fact that dramatic change needs to happen in order to see the full potential of the South African economy. With economic growth being the oxygen of the democracy, greater emphasis needs to be placed on building an inclusive economy.
"There is great growth potential in Southern Africa, and it is by bringing together industry leaders in a conducive manner, such as tonight's event, that we can come together and highlight the ways in which we can all contribute positively to the economy and to drive substantial growth," Colin Grieve, chief representative officer at AfrAsia Bank South Africa, said.
Following on from the disclosure of the survey results, a thought-provoking panel discussion was led by top industry leaders including Colin Coleman (MD of Goldman Sachs Southern Africa); Garth Towell (former MD of Kimberley-Clark South Africa); Grant Pattison (CEO of Massmart); Mzi Mjekevu (vice president of Barclays Corporate Development; Nick Binedell (founding director of GIBS); and Ryan Wood-Collier (director and head AfrAsia Corporate Finance).
