Private Equity In Africa: Domestic demand provides shelter from the crunch
Jason G. Wulterkens (July 13th, 2009) Writes:
The following appeared in June’s Business Diary Botswana:
Private equity (PE) has long been considered a viable way to achieve risk-adjusted returns that exceed those possible in the public equity markets (though per University of Chicago scholar Steven Kaplan, during the three decades ending in 2005, the average private equity firm’s annual return was no better than that of Standard & Poor’s 500 stock index). Accordingly, institutional investors include private equity (or even funds of funds) in order to concurrently achieve optimal diversification and risk premia. And while such “limited partnership interests” demand that investors lock-in their contributions for an appreciable time period, such that general partners can commit to any number of strategies, in recent years the once highly illiquid asset class has given way to a vibrant secondary market available for sellers of private equity assets, which in turn has spread risk and further fueled
...Actis Management, Africa, Africa Business Intelligence, Afrinvest, Alexander Peter Groh, Asia, Aureos Capital, Ayo Salami;, Bank, banker, Brown University, business intelligence, buyout group, cement;, ceo, CEO for West Africa, Citadel Capital’s, Coller Capital;, Duet Victoire Africa Index Fund, Erwin Roex, Financial Times, food, Frontier Markets, Frontier Markets, Geneva, Georgetown, Henricus J. Stander III, Henshaw Capital Partners, IESE Business School;, inadequate infrastructure, infrastructure, International Bank for Reconstruction and Development, International Finance Corporation, Investment Bank, jason g wulterkens, johannesburg, Latin America, London, manager, Managing Director, Marianne Ghali, Market Commentary, Middle East, Moin Siddiqi, Nigeria’s Diamond Bank, North Africa, Peter Schmid, professor formerly, professor of economics, Rashad Kaldany, Ross Levine, Russia, Simon Harford, Sivendran Vettivetpillai, Spain, Sphinx Turnaround Fund, spokesman, Standard & Poor, Steven Kaplan, sub-Saharan Africa, The Financial Times, The Macro Trader, the Maghreb;, The Wall Street Journal, The World Bank;, University of Chicago, University of Navarra in Spain, unreliable electricity, USD, Vice President, Vijaya Ramachandran, west africa, World Bank Group, writer


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