Data & Intelligence
Illiquidity in African Stock Markets A Challenge for Private Equity

In the world of private equity, the success of an investor’s deployment of capital depends greatly on the investor’s ability to earn a return on investments through dividends and distributions and/or to sell the investments for a profit within a finite period of time. In a mature market such as the United States or Europe, the sale of an investment is commonly effected by private equity investors through an “exit” via the public stock markets. In Africa, however, private equity investors have largely relied upon private trade sales to realize investment returns due to the difficulty in achieving timely public placements in the African markets. The inability to exit African securities markets is largely attributable to the lack of liquidity in these markets. So, what are some of the causes of this illiquidity and what is being done about it?

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Renuka Ramnath | Founder, Managing Director & Chief Executive Officer, Multiples Alternate Asset Management Private Limited

Brian Lim | Partner and Head of Asia and Emerging Markets, Pantheon Ventures

David Rubenstein | Co-Founder and Co-Executive Chairman, The Carlyle Group

Dr. Andrew Kuper | Founder and CEO, LeapFrog Investments

Torbjorn Caesar | Senior Partner, Actis

Drew Guff | Managing Director & Founding Partner, Siguler Guff & Company