Key Takeaways
- • Private-capital fundraising for South African investments almost tripled in 2025 to R12.7 billion from R4.6 billion a year earlier, the highest level in at least a decade, according to a SAVCA industry survey.
- • Pension and endowment funds raised their commitments to R4.4 billion from R1.6 billion, and South African investors made up 55% of total fundraising, up from 36% in 2024.
- • Managers hold R45.4 billion of dry powder, roughly twice the value of 2025 investments, and 57% of respondents expect high deal flow in 2027, with a further 6% expecting very high flow.
- • Southern African fundraising more than doubled to R22 billion, while global private equity fundraising fell 17% to $659 billion.
- • Exit proceeds in the region rose 19% to R20.3 billion, with trade sales the most common route at 27 exits generating R5.8 billion.
Summary
Private-capital firms in southern Africa expect a busy deal environment in the coming year and beyond, according to a survey released by the Southern African Venture Capital and Private Equity Association (SAVCA). About 57% of respondents expect high deal flow in 2027, and a further 6% expect very high flow. The outlook follows a slowdown in 2025, when investment value fell 16% to R22.4 billion and the number of transactions declined 18% to 186.
Fundraising for investment in South Africa almost tripled in 2025 to R12.7 billion, the highest level in at least a decade, up from R4.6 billion in 2024. The rebound was driven by pension funds returning to the asset class and rising exit proceeds. Pension and endowment fund commitments rose to R4.4 billion from R1.6 billion, and South African investors accounted for 55% of total fundraising, compared with 36% a year earlier. For southern Africa as a whole, fundraising more than doubled to R22 billion, the second-highest level in a decade.
Managers hold R45.4 billion of dry powder, or undrawn commitments, roughly twice the value of last year's investments. SAVCA said this leaves private-capital firms with sufficient capacity to increase deployment. Returning exit proceeds are expected to free capital that can be committed to new funds, signalling a potential turn in the private-capital cycle.
The regional improvement contrasts with a 17% decline in global private equity fundraising, which fell to $659 billion as the number of funds closed declined for a third straight year. In the region, 52 exits were recorded in 2025, matching 2024, while exit proceeds climbed 19% to R20.3 billion. Trade sales were the most common route, rising to 27 from 15 a year earlier and generating R5.8 billion.
Fundraising for investment in South Africa almost tripled in 2025 to R12.7 billion, the highest level in at least a decade, up from R4.6 billion in 2024. The rebound was driven by pension funds returning to the asset class and rising exit proceeds. Pension and endowment fund commitments rose to R4.4 billion from R1.6 billion, and South African investors accounted for 55% of total fundraising, compared with 36% a year earlier. For southern Africa as a whole, fundraising more than doubled to R22 billion, the second-highest level in a decade.
Managers hold R45.4 billion of dry powder, or undrawn commitments, roughly twice the value of last year's investments. SAVCA said this leaves private-capital firms with sufficient capacity to increase deployment. Returning exit proceeds are expected to free capital that can be committed to new funds, signalling a potential turn in the private-capital cycle.
The regional improvement contrasts with a 17% decline in global private equity fundraising, which fell to $659 billion as the number of funds closed declined for a third straight year. In the region, 52 exits were recorded in 2025, matching 2024, while exit proceeds climbed 19% to R20.3 billion. Trade sales were the most common route, rising to 27 from 15 a year earlier and generating R5.8 billion.
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