African Insights: minimising risk when investing in African-focused PE funds
As a result, some managers (for example, Helios Investment Partners and The Abraaj Group) are now raising significant African-focused funds in the region of $1bn.
In this article we consider a few issues likely to concern managers and investors when making an investment in an African-focused private equity fund:
- environment, social and governance (ESG) considerations and business integrity;
- political risk;
- investment policy;
- DFIs versus institutional investors;
- establishing a new manager relationship;
- deal flow;
- currency risk; and
- exit routes.