Most private equity funds prefer seeking strategic investors when they divest from a company because they perceive listing as expensive. East Africa compared to sub-Saharan Africa has shown positive improvement compared to West and southern Africa, the report shows. This was attributed to stable local economies and solid infrastructure spending by governments which have made the region attractive to investors. Though many private equity funds that have invested in East Africa are nearing maturity, respondents said Initial Public Offers are unattractive as an exit route because they are expensive and bureaucratic. Despite the few options for divestiture, the study shows interest by private equity funds to invest in East Africa is higher this year at 90 per cent compared to 71 per cent in 2015.

Source: The Star June 29, 2016 01:51 UTC