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Private equity exit strategies: The Big Question

The big question we are asking in ESI Africa edition 2-2015 is: “when will the timing be right for developers and private equity (PE) funds to exit African renewable energy projects and what are the determining factors that will strengthen the PE’s exit strategies?”

The Big Question: Private equity exit strategies

In every edition of ESI Africa, the African power journal, we ask a ‘Big Question’ and feature answers from a variety of industry and utility sources. This question may be one that is the subject of controversy, or to which there are many possible answers.

The Private Equity (PE) community in Africa has been on a steady growth path in the renewable energy sector and is now entering a new level of maturity, specifically in the South African market. Karen Breytenbach, head of IPP Office at National Treasury, in conversation with ESI Africa explained that the South African renewable energy market is at a point where developers and early equity funds will want to scale down and exit projects. Where projects have strong cash flow and long-term guaranteed income from a utility company, the exit strategies could be highly flexible. The big question is when will the timing be right for developers and private equity funds to exit African renewable energy projects and what are the determining factors that will strengthen the PEs exit strategies?

Share your thoughts on this Big Question and add your voice to the discussion. Comments shared on or before 30 June 2015 will be considered for publication in ESI Africa 2-2015.

Nicolette Pombo-van Zyl
As the Editor of ESI Africa, my passion is on sustainability and placing African countries on the international stage. I take a keen interest in the trends shaping the power & water utility market along with the projects and local innovations making headline news. Watch my short weekly video on our YouTube channel ESIAfricaTV and speak with me on what has your attention.

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