2012 saw R126,4 billion in total funds under management in the private equity industry. That’s a 10,4% growth, and surpasses the previous four years’ combined cumulative growth of only 4,6%.
“This year’s survey reflects an industry on the move, driven by revitalised global investor appetite and beckoning opportunity in the African and South African markets,” says SAVCA CEO, Erika van der Merwe.
Results come from the annual Venture Capital and Private Equity Industry Performance Survey of South Africa conducted by KPMG and the South African Venture Capital and Private Equity Association (SAVCA).
Further indication of increased activity in the South African private equity industry is the announcement by the Government Employees Pension Fund (GEPF) that it intends to deploy up to R60 billion into private equity over the forthcoming years.
“The industry is again on the move,” confirms Warren Watkins, KPMG Partner, Private Equity South Africa.
“Large amounts of cash in developed markets, the US and Europe in particular are in search of growth assets that are not apparent in their own domestic markets,” agrees Van der Merwe. “South African private equity managers therefore present an attractive, sophisticated and low-risk opportunity for these investors.”