Private equity: Africa increasingly popular with French investors

Mar 18, 2015

The AFIC has announced the creation of an "African club".

The French association of investors for growth (AFIC), which represents the interests of French private equity (PE), has announced the creation of an "African club", which aims to identify investment expertise in Africa and to promote the sharing of experiences in this field.

"The French players in private equity are still underrepresented in Africa, especially when compared to the Anglo-Saxons, but we feel a very strong interest on their part to expand on the continent," said Hervé Schricke, President of Club Africa, quoted by the newspaper La Tribune.

"We probably have a more natural scope in Francophone Africa but there are still many things to do in East Africa," he said.

He mentioned French PE funds such as Amethis Finance, with a presence in Côte d'Ivoire, Ghana, Kenya and Mauritius, but also French group Wendel, which will spend about a third out of two billion euros of investments planned for 2017 on equity investment in Africa.

The value of global private equity deals targeting Africa has more than doubled (137 per cent) in the first half of 2014 compared to the same period last year, according to research from Freshfields Bruckhaus Deringer.

"The increasing interest from the biggest funds is partly as a result of increased risk tolerance, and partly because they’re seeing others do deals in Africa," said the law firm.ADNFCR-2976-ID-801780115-ADNFCR