New analysis by Ocorian has revealed there is $51bn (£38.7bn) in assets under management (AUM) in African-based private markets funds.
The provider of asset servicing for private markets and corporate and fiduciary administration reported that, with funds under management of $31.9bn, private equity funds account for 63 per cent of the total private market assets in Africa, followed by infrastructure funds at $13.1bn.
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Private credit funds account for $3.3bn and real estate for $2.6bn of Africa’s total private markets AUM.
Ocorian’s Global Asset Monitor recently revealed that 52 per cent of global assets in private markets funds are in US-domiciled funds, with $7.2tn in AUM, compared to 25 per cent in Asia, valued at $3.5bn, and 19 per cent in Europe at $2.7tn.
Africa accounts for just 0.4 per cent of the global total, just behind the Middle East (0.5 per cent) and Australasia (0.6 per cent).
“Private markets in Africa represent only a small part of global private markets but can play an important role in driving economic growth with impact,” said Novan Maharahaje, head of fund services, Africa, Middle East and Asia at Ocorian.
“Government finances are under pressure and risk averse banks may be unwilling to lend to businesses seeking investment, which opens a role for private markets in general and private equity in particular.”
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