Breaking down key outcomes from SAVCA’s Private Equity Conference

The annual SAVCA Private Equity Conference recently took place, bringing together key players in the private equity industry to discuss the latest trends and developments. Tanya van Lill, the outgoing CEO of the Southern African Venture Capital and Private Equity Association, shared some insights from the conference in a recent interview with CNBC Africa. One of the key takeaways from the conference was the energy and enthusiasm among participants, including deal makers, institutional ambassadors, fund managers, policy makers, and service providers. The conversations at the conference highlighted the importance of infrastructure investment and the challenges of balancing investments in South African infrastructure with opportunities across the continent. There was also a debate on investing for climate change versus investing for social impact, with the consensus being that it is possible to do both. Another significant trend discussed at the conference was the emergence of specialist funds in the industry and the increasing convergence between private equity and private debt. The availability of private debt at affordable rates in Africa has opened up new investment opportunities. Despite these developments, the value that private equity brings to companies and the positive impact it can have was reiterated throughout the conference. South Africa remains a key player in private equity investment, particularly in sectors like infrastructure. Private equity investments in digital infrastructure and essential services such as water and roads have been gaining momentum. The focus on making a difference not only in financial performance but also in improving people's lives was a key theme in discussions around infrastructure investment. ESG (Environmental, Social, and Governance) considerations have been integral to private equity decision-making for many years, but they are now taking on greater significance. Development finance institutions have been particularly active in promoting ESG principles in private equity investments as a way to manage risks and ensure sustainable investment practices. However, the private equity landscape in South Africa faces challenges, including the need to attract investors amidst political and economic instabilities. Selling South Africa as an attractive investment destination and finding the right deals are ongoing challenges for private equity funds in the region. Additionally, the long-term nature of private equity investments requires patience and a focus on both financial returns and positive impact. Overall, the SAVCA Conference provided valuable insights into the evolving private equity landscape in Africa, highlighting the opportunities and challenges that lie ahead.