Private Equity / Vision

Enko Africa Private Equity Fund (EAPEF) is a private equity fund established for the purpose of investing in growth companies in Africa across a broad range of economic sectors. It successfully reached a US$48.25 million first closing in April 2014 and is currently fundraising for its final close in 2015.

Why Africa now?

 

Superior Growth

Seven out of the 10 fastest growing economies in the world in the next three years are in Africa (Source: IMF, The Economist).

Large Consumer Market

200 million Africans with significant discretionary spending power (GDP per capita >US$5k) by 2020, larger than in India (Source: McKinsey).

New Green Revolution

60% of the world’s available arable land, competitive labour cost, yet no significant improvement in agricultural yields for the past 60 years (Source: Syngenta Foundation).

Infrastructure Investment

Increased infrastructure investment driven by increased resources activity and rapid urbanization.

Demographic Dividend

Half of the continent’s 1 billion population is of working age (15 – 64 years old)and average GDP growth now exceeds population growth.

 

Why focus on African IPO’s?

Based on a fundamental undersupply of investible scrip and a growing pool of institutional investors, IPO’s on African stock exchanges have become a recognized way for portfolio companies to raise capital, whilst providing PE investors with an attractive exit route.

 

Two thirds of African countries have stock exchanges. Between 2007 and 2014, US$17.3bn was raised on 20 African exchanges, via 207 new issues. Half of those IPOs attributed to mid-sized companies with annual revenues of less than US$50m.

A majority of the IPO issuers achieved favorable pricing metrics compared to private transactions in Africa.

Most African IPOs between 2007 and 2014 were over-subscribed, mainly due to a persisting imbalance between supply and demand for new listed assets among local retail and institutional investors.