(Corrects spelling of ECP director’s name in paragraph 17)
* Private equity taps fast growth in illiquid markets
* Pension funds show interest
* Exit remains key challenge for funds
By Cosmas Butunyi and David Dolan
JOHANNESBURG, April 19 (Reuters) – Africa is the next big
thing, just ask Bob Geldof and other private equity bankers.
The Irish rocker made headlines in February when he
announced the launch of his $200 million “8 Mile” fund, a sign
the Live Aid organiser had turned from promoting debt
forgiveness to private enterprise.
Like the former Boomtown Rats frontman, more private equity
investors are flocking to the continent, drawn by the prospect
of outsize returns.
The signs of Africa’s stunning potential are obvious: 6
percent average GDP growth, fast-rising incomes and abundant
resources. So far, much growth has been beyond the reach of
international investors given the region’s small and largely
illiquid capital markets.
Continued…
