WHAT IS PRIVATE EQUITY?

Private equity is an alternative investment banking class consisting of cash that is directly invested in private companies that are not listed on a  

public exchange and typically refer to private investors or investment funds that are generally organized as limited partnership that buy and restructure companies for profit.  Private equity structured finance is usually made by Investors in exchange for  part/ownership of the business or project with expected compensation in the form of dividend payments or other structured forms of repayment including trade sales and management buyouts.

Private equity transactions are different from traditional debt finance because they are usually structured by Investors where business target companies are not expected to make any form of annual repayments, rather the cash investment is repaid on agreed terms over a specified time when Investors may want to exit the transaction cycle.  The underlying motivation for such commitments is the pursuit of achieving a positive return on investment (ROI) and effective risk management

Private Equity in Africa is currently  seen as the new norm in investment banking activities. Investors investing in Africa usually prefer structuring by way of private equity.