2025 African Private Capital Activity Report (AVCA)

Summary

• African-focused managers raised US$2.7bn in final closes (-34% YoY) across 16 funds in 2025.p.5
• 530 private capital deals were completed in 2025 (+8% YoY), invested across US$5.1bn (-5% YoY).p.9
• 81 exits were recorded in 2025, up 27% YoY and the second highest on record.p.14
• Private Debt deal activity increased 57% YoY to 72 transactions, the asset class's strongest performance on record.p.12
• Venture Capital deal value declined 21% YoY to US$1.6bn, marking a fourth consecutive annual drop.p.12
• Private Equity deal value fell 32% YoY to US$1.3bn, the lowest level since 2018.p.13
• East Africa recorded the strongest growth, with investment value surging 75% YoY to US$1.2bn.p.4

Key insights

1. Between 2022 and 2025, African LP exposure to private equity rose from 29% to 74%, while Private Debt increased from 6% to 17%.p.4
2. Private Equity final closes rose 21% YoY to US$1.4bn, accounting for 51% of Africa's fundraising value.p.5
3. Large vehicles above US$250m accounted for a 70% share of fundraising, raising US$4.6bn across ten funds over the past two years.p.6
4. Infrastructure fundraising reached US$995mn, a 19% YoY decline and the smallest contraction across strategies.p.7
5. Four first-time managers closed funds during the year, together accounting for just 6% of total final close values.p.8
6. Total deal volume reached 530 transactions in 2025, above the recent two-year average of 474.p.10
7. Deal values declined by 16% YoY in smaller transactions (sub-US$50mn), while large transactions above US$100mn were down 37%.p.11
8. Trade buyers accounted for 38% of all exits, while secondaries accounted for 26%.p.14
9. The exit-to-investment ratio rose to 0.2x in 2025 from 0.1x in 2024.p.14