Once institutional investors have exposure to Africa through private funds, they are likely to go back for more, according to a survey from African Private Equity And Venture Capital Association.
Published in December, the 2023 African Private Capital Industry Survey collates the views of 88 investors – including both LPs and GPs – actively involved in Africa’s private capital industry.
Of the LPs that were invested in the region, 85 percent planned to increase their allocation over the next twelve months. No investors suggested that they would be decreasing their allocation. Among the same cohort, only 45 percent intended to increase their developed market allocation.
Generating impact is a primary consideration for the majority (77 percent) of these investors. A smaller proportion (41 percent) are upping their allocations because they are attracted by the risk/return profile.
Investors disagreed with their managers with regard to the sectors that offered the best prospects for private capital investors. LPs considered financial services to the most attractive sector, followed by agribusiness and the energy and environment sector. In contrast, GPs viewed technology and healthcare as the two most promising sectors.
Source link : https://www.newprivatemarkets.com/data-snapshot-lps-seek-impact-in-africa/
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Publish date : 2024-07-17 00:19:30
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