Private equity is an investment category offering substantial benefits to investors, entrepreneurs and economies as a whole.
At African Alliance Private Equity, providing private equity capital to developing economies in which we are active is critical to our role as a promoter of economic growth and local entrepreneurial empowerment.
Private equity is a distinct asset class and generally refers to equity finance for unlisted companies at many stages, from start-up to expansion. It also includes management buy-outs and buy-ins of established companies with real growth potential that can be enhanced with private equity support. Private equity funds receive their capital from investors seeking higher-than-normal returns within acceptable risk parameters. The private equity funds then invest in a diverse portfolio of growing companies. This diversification reduces investors’ overall risk, while enhancing returns.
We believe structuring a private equity fund effectively can add significant value to investors, local entrepreneurs and the national economy. Private equity investors have a considerable impact on productivity, skills development, national competitiveness and job creation, because the process includes transfer and exchange of know-how and not only the flow of capital.
A thorough knowledge of all applicable laws and regulatory bodies is critical before attempting to structure a private equity fund. Our local presence allows us to structure workable solutions in a domestic environment rather than trying to replicate international models simply because they work elsewhere.
Our private equity funds have enjoyed substantial support from local investors and asset managers. Our returns have been favourable and our record of capital preservation exceptional. As a result, we are the appointed managers of private equity funds in various African countries where our experience, world-class systems and transactional knowledge give us a distinct advantage over other private equity players.
We provide full private equity fund management services to existing funds. These include deal origination, transaction management, post-investment management and administrative support.