AAA Welcomes News of Private Equity Investment in Africa

April 20, 2011 - PRLog -- Boston, MA, April 20, 2011 -- Alternative Asset Analysis (AAA) has welcomed a new report from alternative asset research firm Pregin, which has found that private equity investment is helping to develop economies in Africa.

The alternative investment analysis organization supports all forms of alternative assets, including private equity investment – particularly in developing economies. The new research by Pregin shows that an increasing number of Development Finance Institutions (DFIs) are regularly allocating part of their portfolios to African private equity firms.

"This is great news for the alternative asset industry and for Africa's developing economies. Major investment from foreign institutions can help to get an economy onto its feet and provide a significant boost to its private sector," explained AAA's partner, Anthony Johnson, who is a seasoned fund manager and analyst.

Some of the major DFIs that have allocated funds to African private equity include, the Overseas Private Investment Corporations (OPIC), the World Bank's International Finance Corporation (IFC) and Germany's DEG.

Last year, for example, the IFC increased its investment in sub-Saharan Africa to total $2.4 billion, up from $1.8 billion in 2009. Some of the firms to benefit include Nigerian banks, GTBank and First Bank of Nigeria.

Meanwhile US-base private equity firms like Carlyle is setting up operations in Africa, including establishing offices in Lagos and Johannesburg. "Reports suggest that South Africa is a great spot for setting up operations in private equity and lots of foreign investors are doing just that. Nigeria seems to be the major target," added Johnson.

Okey Enelamah, the CEO at African Capital Alliance, which is a leading private equity firm, explained what an impact the surge in private equity has had on the continent: "Private equity has contributed significantly to improving the economic landscape of several African countries, including Nigeria, through mobilising private sector capital."

AAA is keen to promote private equity investment in developing markets, such as Sub-Saharan Africa and Brazil. Brazil has become a major hub for investment in recent years as the country’s economy has gone from strength to strength with the help of this foreign investment.

Those who have invested in Brazilian forestry, for example, through firms like Greenwood Management, have seen their return regularly exceed returns from stocks and shares due to the volatile economic climate. "If you want to spread risk and help emerging economies, considering an investment in Africa or Latin America is an ethical and profitable choice," concluded Johnson.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

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