The African private capital market experienced a record-high volume of deals in 2022 rising by as much as 46 per cent, the African Private Capital Association (AVCA) has disclosed.
This was contained in the 2022 African Private Capital Activity Report released, yesterday, by AVCA. The authoritative yearly report offers deep insights into private capital fundraising, investment inflow and outflow from Africa. It shares extensive data and analysis across investment strategies covering private equity, private debt, venture capital, infrastructure and real estate activity across all sub-regions.
The report reaffirms Africa’s position as a bankable investment destination and as the only market to have experienced growth in both the number of deals closed and capital invested.
About $7.6 billion of private capital was invested in 2022, marking a three per cent YoY growth in deal values across the continent throughout 2022. The activities were driven by record growth in mid-market ($10 million to $49 million) and larger-sized ($50 million to $100 million) deals.
Catalysed by venture capital deal flows, 2022 attracted the second-highest private capital investment in the last decade. Commenting on the report, Chief Executive Officer, AVCA, Abi Mustapha-Maduakor, said: “In the face of highly challenging global economic conditions, our industry saw an impressive number of exits – the most in history.
“The growing diversity of asset classes in the private capital ecosystem unlocks broader investment opportunities across exciting geographies and represents a marketplace finding more solutions in response to our transforming economy.
“We are delighted to see strong performance in venture capital and growth in private equity and private debt. As our industry matures, AVCA’s metrics mark the evolution. We look forward to building on our organisation’s role as an enabler of growth and investment.”
