Stories private equity is looking for in Africa

–    The business model is scalable
–    There is a compelling case that there is large latent/unmet demand for the product/service
–    Competition is underperforming/non-existing and barriers to entry are high
–    Competition for financing a given firm is low (don’t want to enter a bidding war)
–    Strong personal relationships with management
–    Strong balance sheets for financial institutions (diligence their Accounts Receivable and recovery rates)
–    Strong Debt Service Coverage Ratios for mature businesses

–    Rapid growth in the urban middle class – rapid demand growth from the latent baseline
–    Large domestic market
–    Rule of law/low corruption (esp. for PPPs)


One thought on “Stories private equity is looking for in Africa

  1. Your blog is interesting. I am interested in changing economic structures. When you are in New York, I will introduce you to a dear friend from Rwanda….

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