Major private equity firms have seen a number of top management departures in Africa, individuals familiar with the matter said, as the funds grapple with investments hurt by a weak economy.
U.S. firm Carlyle, Standard Chartered and emerging market-focused Actis have all seen a change of top executives at their Africa funds, according to these six individuals.
Once seen as a beacon of growth, private equity firms expanded their business in the region just before the financial crash. A weak economy and falling currencies have now taken the gloss off a decade of ‘Africa rising’ optimism.
Some investments by these companies have struggled in the downturn. The changes at these groups, which pool the money of pension funds and international investors to buy, say, a stake in local companies, bring this decline into focus.
Carlyle’s Africa chief, Marlon Chigwende, confirmed that he had left. His departure in August followed a number of unsuccessful buyouts, including in Nigeria’s struggling Diamond Bank, two sources familiar with the matter said.
Chigwende told Reuters that investments had done well while he was in charge and that he was now setting up his own fund. Carlyle did not comment on the reasons for his departure.
The Africa chief for Actis, John van Wyk, is also due to leave, two sources familiar with the matter said, asking to remain anonymous because of the sensitivity of the matter. Van Wyk did not respond to a request for comment.
The company’s global private equity head Peter Schmid, a veteran of African fund management, said he too would be leaving the group. An Actis spokesman declined to comment.
Source: Reuters