Private equity in South Africa saw significant challenges in 2017, including increased and more complicated regulation, competition for attractive deals and arduous value-creation efforts, notes RisCura’s senior private equity analyst Kelsey Tanner.
Yet the resilience of the asset class came through in the third quarter’s results, where returns were sustained amongst political uncertainty and macro-economic factor fluctuations.
In Q3, IRR returns favoured the three-year period at 13.7%, up from 13.6% in Q2 2017. The five- and 10-year returns were 13.6% and 12.9%, respectively.
PE returns outperformed listed metrics over the three-year period, but performance compared to listed markets diminished slightly over the quarter, mainly due to higher returns in the ALSI, FINDI and SWIX over three years. PE is set to continue its strong performance, which is key to turning optimism into investment.
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