Africa’s private equity fundraising plummeted 62% year-on-year, sliding to its lowest level in eight years, as global LPs shy away from the continent.
This has been exacerbated by development finance institutions (DFIs) cutting their fund commitments in favor of direct and debt deals.
Even so, a good number of GPs have been beating targets, with some even upsizing their vehicles to accommodate more LPs.
This begets the question – which LPs are now backing Africa?
New data now shows that while DFIs have been the continent’s core LPs, historically, they have only made up about 15% of the LPs that have backed African funds over the last decade.
The DFIs have been surpassed in terms of numbers by asset managers, who have made up just over 18% of LPs on the continent.
Pension funds have also been significant players, trailing DFIs by only a few percentage points.
The bulk of Africa’s LPs have been based in Europe, with Africa and North America almost on par.
Deal Book Africa has analysed 900+ funds to unearth LP allocations, presenting the first incisive view of LP intelligence on Africa.