Anticipated Rise in Private Investment Transactions in Southern Africa as Exits Generate R5.8 Billion

October 20, 2026 The Paper A significant number of private-capital firms in southern Africa anticipate a thriving business environment in the coming year as increased fundraising and heightened exit revenues provide more capital for new ventures, according to a recent survey.

Approximately 57% of participants in an industry survey conducted by the Southern African Venture Capital and Private Equity Association, published on Tuesday, foresee a robust deal flow next year, with another 6% predicting it will be exceptionally high.

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This optimism follows a decline in dealmaking in 2025, where investment value dropped by 16% to R22.4 billion and the total number of transactions decreased by 18% to 186.

Managers currently have R45.4 billion in so-called dry powder, or undrawn commitments, ready for investment.

This amount is nearly double the investment value from the previous year, “allowing private-capital firms ample capacity to facilitate an increase in future deployments,” the report indicated.

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The positive forecast hints at a potential shift in the private-capital cycle, as more funds from exits return cash to investors, which can then be allocated to new funds, while managers have significant capital ready to invest.

Last year, fundraising by private-capital firms aimed at investments in South Africa surged nearly threefold, reaching its highest level in at least a decade as pension funds re-entered the asset class alongside increased exit revenues.

Funds raised for use in the continent’s largest economy rose to R12.7 billion in 2025, up from R4.6 billion the previous year, it noted.

For southern Africa as a whole, fundraising exceeded R22 billion, more than doubling and marking the second-highest level in a decade, the report highlighted.

South African investors represented 55% of the total fundraising, an increase from 36% in 2024, with pension and endowment funds boosting their commitments to R4.4 billion from R1.6 billion.

This regional growth contrasts with a global decline in private equity fundraising, which fell by 17%, totaling $659 billion, as the number of funds closed declined for the third consecutive year, the report indicated.

While southern African private-capital firms recorded 52 exits last year, matching the previous year’s figures, exit proceeds rose by 19% to R20.3 billion.

Trade sales emerged as the predominant exit strategy, increasing to 27 from 15 the previous year and generating R5.8 billion in exit proceeds.

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