Conduits of Capital

RESPONDENT PROFILE AND
GLOSSARY OF TERMS
In April 2015, FSD Africa (FSDA) and EMPEA Consulting
Services surveyed 118 individuals active in Sub-Saharan
African private equity from over 90 firms. The respondents
represent limited partners (LPs), general partners (GPs)
and service providers (SPs) headquartered across more
than 30 countries, with 39% of respondents from firms
based in Sub-Saharan Africa.
To glean qualitative insights that complement the survey’s
quantitative findings, FSD Africa and EMPEA Consulting
Services also conducted structured interviews with
approximately a dozen stakeholders representing a blend
of local and international constituencies, as well as countryfocussed,
sub-regional, pan-African and global private
equity strategies.
For greater detail on the survey respondents, please see
Appendix 1 (page 37).
GLOSSARY OF TERMS AND SURVEY
DEFINITIONS
“Africa” refers to all 54 countries comprising the African continent.
“Alternative Investment Fund Managers Directive” (abbreviated
to “AIFMD”) is a European Union directive governing the regulation—
including management, administration and marketing—of alternative
investment funds operating in the European Union.
“Blind pool vehicle” refers to a pool of investment capital raised by a
fund manager from third-party investors, who have no involvement in the
decision making as to how the capital is invested.
“DFI” refers to a development finance institution with a private equity fund
investment program.
“Dual structures” refers to a private equity fund that operates two parallel
vehicles, one offshore and one onshore. The offshore structure often
caters to international limited partners, while the onshore structure typically
caters to domestic limited partners. There will typically be contractual
arrangements between the two parallel vehicles to ensure an equitable
participation in deals for both international and domestic limited partners.
“Foreign Account Tax Compliance Act” (abbreviated to “FATCA”) is a US
law aimed at foreign financial institutions and other financial intermediaries
to reduce the levels of tax avoidance by both US citizens and entities through
offshore accounts.
“Limited liability” refers to a situation in which an investor’s financial liability
is limited only to the amount that it has invested.
“Limited partners” (abbreviated to “LPs”) are investors in PE funds.
“General partners” (abbreviated to “GPs”) are investment managers of
PE funds.
“North Africa” refers to Morocco, Algeria, Tunisia, Libya, Egypt and Sudan
(but not South Sudan).
18 |