Zombies GPs in Africa: Why early intervention, governance and secondaries now matter more than ever

In an interview with Business Insider Africa, Marc Lasserre draws attention to the growing phenomenon of zombie GPs in African Private Equity.

These fund managers, unable to raise new funds for several years, continue to oversee portfolio companies without the capacity to provide adequate support. This situation hampers portfolio turnover.

Marc emphasizes the importance of early intervention and stronger governance: investors need to recognize warning signs and implement mechanisms to support, restructure, or, where necessary, replace management teams. The secondary market also plays a critical role, allowing existing stakes to be sold, freeing up capital for new investments, and increasing transparency for new entrants.

He also underscores the importance of increasing to participation of local investors: the continent cannot remain dependent on foreign capital indefinitely. Strengthening the base of African institutional investors is essential to ensure a sustainable and autonomous growth of Private Equity in Africa.

https://africa.businessinsider.com/local/markets/zombie-funds-in-african-private-equity-why-early-intervention-governance-and/49snp84