3. In
this
slideshow:
• Typical
and
attractive
exits
in
Africa
• Forms
of
investment
realizations
• Minority
ownership
maintenance
• Sizing
up
Africa’s
largest
markets
Informed
by
EY
and
AVCA’s
2013
African
Exits
4. African
PE
has
a
strong
history
of
exits
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full
report
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“The
exit
is
a
reality
in
Africa,
especially
in
North
and
South
Africa
but
also
in
the
sub-‐Saharan
region—and
the
returns
are
also
there.
If
I
go
back
to
pre-‐2006,
our
average
multiple
was
around
1.7.
Afterward
it
was
around
2.5.”
-‐Ziad
Oueslati
of
AfricInvest-‐TunInvest
Group
5. Trade
sales
are
the
predominant
form
of
investment
realization
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A
recent
study
of
African
exits
by
EY
and
the
Africa
Venture
Capital
Association
con[irmed
that
data.
Trade
buyers
accounted
for
half
of
all
exits
from
2007
to
2012.
The
study
further
revealed
that
regional
trade
buyers
are
a
growing
force.
Between
2010
and
2012,
sales
to
regional
trade
buyers
accounted
for
half
of
all
sales
to
trade
buyers.
That’s
up
from
the
2007–2009
period,
when
local
trade
buyers
were
more
dominant.
6. Basic
governance
improvements
can
transform
African
businesses
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“We
see
a
lot
of
the
private
buyouts.
It’s
typically
family-‐owned
businesses
that
need
to
be
transformed
into
a
corporation.
So
a
lot
of
the
value-‐add
done
by
private
equity
is
putting
in
place
governance
in
running
the
companies.”
-‐Sandile
Hlophe,
EY
7. Minority
ownership
requires
constant
communication
and
guidance
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full
report
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slideshow
It’s
more
dif[icult
for
a
private
equity
[irm
with
a
minority
stake
to
exert
in[luence
and
impose
governance
on
a
portfolio
company.
Often
it’s
impossible.
8. Capturing
consumer
growth
means
attractive
exits
to
strategics
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report
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“The
middle
class
is
growing,
and
the
internaConal
investors
know
that
the
consumer
story
in
Africa
is
a
real
story,
because
middle-‐class
growth
is
sCll
in
the
beginning
and
it’s
going
to
conCnue.”
-‐Ngalaah
Chuphi,
Ethos
Private
Equity
9. For
more
private
equity
video
interviews,
special
reports
and
commentary,
visit
www.privcap.com
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