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 final close of US$63.40m in February 2016.

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.