Wednesday, March 20, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > PE Industry News

SA PE performance steady against listed markets

Staff writer
May 28, 2018, 4:56 p.m.
614

Word count: 323

The SA private equity has outperformed the FTSE/JSE All Share Total Return Index (ALSI TRI) and the FTSE/JSE Shareholder Weighted Total Return Index (SWIX TRI) over the 3-year and 5-year reporting periods analysed. 

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The SA private equity has outperformed the FTSE/JSE All Share Total Return Index (ALSI TRI) and the FTSE/JSE Shareholder Weighted Total Return Index (SWIX TRI) over the 3-year and 5-year reporting periods analysed. 

The Q4 2017 RisCura-SAVCA South African Private Equity Performance Report report, which tracks the performance of a representative sample of South Africa’s private equity funds, also reveals that the public market equivalent (PME) recorded, is greater than 1 against all three listed benchmarks for the 3-year period; reflecting positively for the asset class.

“The private equity sector, like many others, experienced a slowdown associated with the political uncertainty and populist narrative of most of the last quarter of 2017. The decrease in pooled IRR figures also reflects the cyclical nature of the asset class,” said Tanya van Lill, SAVCA CEO. 

“We anticipate potential for an upward swing to be recorded in Q1, against the backdrop of renewed, positive political sentiment, a rise in investor confidence and the ability of SA fund managers to weather macro-economic storms though effective decision making and value extraction. This is coupled with government’s continued focus on positioning South Africa as an attractive and viable investment destination.”

USD IRR declined over the 10-year period, reaching 6.7%.

The 5-year and 3-year IRR increased to 3.9% and 7.7%, respectively, up from 2.5% and 7.1% at September 2017.  

“The report also noted an improvement in IRR from the 2013-2015 vintage funds,” said Kelsey Tanner, Senior Private Equity Analyst at RisCura. 

“Smaller funds, particularly those under the R500m bracket, continue to outperform larger funds.”

Van Lill added: “Private equity has come a long way within the last 20-30 years; the asset class has become more widely known and appreciated by investors. Impact investment - addressing socio-economic issues, whilst making a solid return - has also gained traction within the sector, as well as the industry’s continued role in contributing to environmental, social and governance (ESG) measures.”

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