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Africa needs a mix of venture capital and private equity funds
PE funds normally invest in a lifespan of five to seven years then exit. PHOTO | FOTOSEARCH
Given the wall of private equity (PE) money coming in to Africa, do we have the type of investment deals that equity funds are looking for? Is the same model used in the Europe and North America sustainable in Africa?
According to African Private Equity and Venture Capital Association (AVCA), PE funds invested $8.1 billion (Sh810 billion) in African companies in 2014, the second highest total ever after the $8.3 billion in 2007. The 2014 figure is also an improvement over the $ 4.1 billion in 2013 and $2 billion in 2012.