• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Private equity firms in Nigeria face worst year for investment exit

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
80
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Private equity firms in Nigeria face worst year for investment exit

Private equity firms in Nigeria have not been spared from the global lull in the sale of portfolio companies this year.

The firms are facing the worst year since 2012 for investment exits due to a combination of high interest rates and geopolitical tensions which has marred private capital inflows and upended valuations.

Only 17 companies were sold by private equity firms across Africa in the first six months of 2023, the lowest in nine years, according to data from the African Private Equity and Venture Capital Association (AVCA).

The slowdown is in contrast to the record breaking 2022, which saw 29 exits at this stage in the same period and a total of 82 exits by the end of the year, the most since at least 2007.

“The downward trends in exit activity across Africa in 2023 H1 mirror the challenges that fund managers face on a global scale when seeking to exit their portfolio companies amidst the current macroeconomic backdrop, necessitating longer asset holding periods,” AVCA said in a report.

Private equity firms based in Nigeria always knew there would be no repeat this year of a blockbuster 2022, when deals that had been struck since COVID-19 struck in 2020 came flying in.

RelatedPosts

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

The steep decline in exit activity has been worsened by the rapidly weakening naira value against the dollar, which is so volatile it upends valuations within days and has created uncertainty for investors.

Nigeria allowed the naira to weaken against the dollar in June, paving the way for a 40 percent devaluation in one fell swoop.

While the much-awaited reform, which had seemed stuck for eight years, was cheered by investors, the rapid decline in the currency since then has been unexpected and made the reform even more painful.

“Reforms are always painful and something has got to give,” said Danladi Verheijen, the co-founder and managing director of Verod Capital, a leading Anglophone West African private equity firm based in Nigeria.

“Nigeria is like a patient with a failed kidney who is first worse off after going under the knife but begins the healing process and gets better eventually,” said Verheijen, whose Verod Capital announced an investment in an ICT solutions provider this month.

Verod Capital and AfricInvest partnered to acquire a majority stake in iSON Xperiences, which specialises in delivering business process outsourcing, business process management and digital customer experience solutions across Africa, the United Arab Emirates, and India.

Like Nigeria, like the world

The slowdown in buyouts in Africa is not unique to private equity firms in Nigeria and Africa. Private equity firms globally are also facing the worst year since 2013.

In the first nine months of the year, buyout firms generated $584 billion from either selling companies outright or through taking them public, according to data from PitchBook.

The amount is more than $100 billion less than the amount generated during the same period last year and almost two-thirds below the record $1.4 trillion generated in 2021, when borrowing costs were low and US equities were still in a bull market.

Higher interest rates have hammered the market for initial public offerings and made companies wary of making acquisitions. The last time buyout firms made less from the sale of their portfolio companies was in 2013, the data shows.

The weak exit activity underlines the challenge confronting private equity firms as they try to monetise their investments and return money to investors.

Singapore’s GIC, one of the most influential investors, warned in July that a golden age for the buyout industry had ended.

Source: businessdayng
Via: norvanreports
Tags: investment exitPrivate equity firmsPrivate equity firms in Nigeria face worst year for investment exit
No Result
View All Result

Highlights

OPEC+ Nears Decision Point on Next Oil Output Hike

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Trending

Business

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

August 3, 2025

Multichoice Rebuffs Minister's Claim On DSTV Price Cuts, Cites Market Conditions MultiChoice Ghana has pushed back against...

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.