Intercontinental Trust Limited’s Varounen Goinden and Dinesh Sunnoo look at how the continent’s private equity and venture capital landscape has evolved over the last year, and what are the key lessons that fund managers can take into the current year to entrench Mauritius’ positioning as the de-facto gateway to Africa.
Africa’s private equity and venture capital landscape has not stood still over the past year, but it has undoubtedly recalibrated. While the continent remains firmly positioned as a long-term destination for private capital, the way funds are raised, structured, and managed has evolved meaningfully. Speed and scale have given way to discipline, operational readiness, and a sharper focus on meeting institutional expectations.
For those working closely with fund managers, these shifts have been unmistakable. Higher global interest rates, tighter liquidity, and more cautious investor behaviour have translated into longer fundraising timelines, more selective capital deployment, and deeper scrutiny of governance and reporting frameworks. This has not signalled a retreat from Africa, but rather a more deliberate and selective approach across the ecosystem.
“What we are seeing is not a loss of appetite for Africa, but a change in how investors engage with the continent,” notes Dinesh Sunnoo, Senior Manager – Fund Services at Intercontinental Trust Limited (ITL). “Capital is still being deployed, but managers are expected to demonstrate institutional-grade governance, transparency, and operational robustness much earlier in the lifecycle.”
Fewer Launches, Deeper Engagements
One of the most visible outcomes of this recalibration has been a slowdown in new fund launches, particularly among first-time managers. From a fund administration perspective, this has resulted in fewer formation mandates, but significantly more depth in the engagements that do materialise. Managers are spending more time upfront on compliance, reporting frameworks, substance, and governance before approaching the market.
Existing funds, however, have remained active. Administrators are increasingly supporting more complex portfolio structures, valuation methodologies, and investor reporting requirements. Exit planning, cash management, and distribution mechanics have also moved higher up the agenda as LPs focus more closely on liquidity and capital returns.
“Accurate reporting, audit readiness, and strong administrative controls are no longer seen as back-office functions,” Dinesh adds. “They are central to a fund’s credibility and can directly influence LP confidence and fundraising outcomes.”
Global Conversations, Local Realities
ITL’s participation in industry forums throughout the year, including AVCA conferences in Nigeria and Mauritius, AFSIC in London, and SuperReturn Africa in Cape Town, reinforced how global capital views Africa through an increasingly disciplined lens.
At AFSIC – Investing in Africa, held as part of Africa Investment Week in London, discussions reflected both opportunity and caution. ESG and impact investing remained dominant themes, with a noticeable rise in investor interest in gender-focused and women empowerment funds. Alongside this, private debt continued to gain prominence as an alternative to traditional PE and VC strategies, driven by limited exit options and funding gaps not addressed by conventional banking channels.
“Private debt has steadily emerged as a compelling asset class for Africa,” says Varounen Goinden, Chief Operating Officer at ITL. “But it is also a far more nuanced product to administer. The processes, controls, and skillsets required differ markedly from private equity, and that operational complexity is often underestimated.”
ESG: Momentum Meets Practicality
Sustainable investing featured prominently across all forums, underpinned by strong demand from development finance institutions and global LPs. Mauritius’ introduction of ESG fund disclosure and reporting guidance by the Financial Services Commission (FSC) came at a pivotal moment, aligning the jurisdiction more closely with investor expectations.
“The FSC’s ESG guidance is timely and provides useful direction on how funds should be managed and disclosed,” Varounen observes. “That said, alignment with globally recognised frameworks such as the EU’s SFDR will be critical. Investors are increasingly looking for consistency and practicality, especially when applying ESG standards across diverse African markets.”
From an administrative standpoint, ESG has translated into deeper involvement in governance frameworks, data collection, and reporting processes, further reinforcing the shift toward operational substance.
Mauritius’ Role in the Spotlight
Discussions in Mauritius and London also highlighted the growing competition among international financial centres seeking to position themselves as gateways into Africa. While new jurisdictions are emerging, Mauritius continues to play a central role in Africa-focused fund structuring.
“Mauritius was the first jurisdiction to truly serve Africa as an international financial centre, and that legacy matters,” says Varounen. “But leadership cannot be taken for granted. We need to remain agile, innovative, and unified in how we present our value proposition to global investors.”
As a locally owned, Africa-centric management company with 25 years of experience, ITL’s long-standing presence and deep relationships across the continent have become increasingly relevant in a more demanding investment environment.
A More Institutional Market
SuperReturn Africa in Cape Town saw discussions shift decisively toward performance, distributions, and exits. LPs focused heavily on which managers were returning capital and how those distributions were being managed, while GPs explored trade sales, secondaries, and continuation vehicles. Each of these outcomes carries operational implications that underscore the evolving role of fund administrators.
Looking ahead, LP selectivity is likely to remain a defining feature of African private capital. Fundraising conditions may improve, but expectations around governance, transparency, and operational strength will continue to rise.
“While fewer new funds entered the market, the overall quality and institutional readiness of the ecosystem has improved,” Dinesh concludes. “From our perspective, that is a healthy evolution—one that positions Africa’s private capital market for more resilient, long-term growth.”
