State of African PE and VC secondaries in 2026

In short

• Secondaries represented 26% of 81 African private capital exits in 2025 per AVCA, the highest share on record, with financial services accounting for 43% of secondary exits.
• Sango Capital completed the largest documented LP-led secondary in May 2026, acquiring >$120m NAV across four funds with ~30 underlying companies in 14 markets.
• GP-led continuation vehicles are rising in prominence alongside LP portfolio sales, mirroring global trends where GP-led now comprise roughly half of secondary volume.
• Pricing data is scarce; global LP portfolios averaged 87% of NAV in H1 2026, with African deals understood to clear at wider discounts.
• Constraints include valuation misalignment, immature legal frameworks for conflicts and consent, and limited participation by global secondaries funds.

Secondaries reach record share of African exits

In 2025, Africa recorded 81 private capital exits, a 27% increase year-on-year and the second-highest annual total on record, according to the African Private Capital Association’s (AVCA) 2025 African Private Capital Activity Report. Trade sales led with 38%, while secondaries accounted for 26% — their highest share to date and up from the five-year average. Financial services drove much of the secondary activity, representing 43% of such exits after tripling year-on-year.

This shift reflects maturing fund vintages from the 2013–2018 period and persistent challenges in traditional exits across key markets such as Nigeria, Kenya and South Africa. Globally, GP-led secondaries made up roughly half of the $226–240 billion secondary market in 2025, with continuation vehicles a primary driver. African activity remains smaller but follows similar patterns, with both LP-led and GP-led structures in use.

LP-led secondaries involve limited partners selling fund interests to new buyers, typically at a discount to net asset value (NAV), providing immediate liquidity without changing the underlying portfolio or general partner (GP). GP-led transactions, including continuation vehicles, see the GP roll assets into a new vehicle, often to extend holding periods for high-conviction positions while offering liquidity options to existing LPs.

LP-led versus GP-led dynamics

LP-led deals have historically dominated African secondaries, often involving development finance institutions (DFIs) or international LPs rebalancing away from the continent. These provide portfolio cleanup for sellers but can face pricing pressure due to perceived liquidity and country risks.

GP-led deals, particularly continuation vehicles, are gaining ground as fund lives end and traditional exits lag. They allow GPs to retain control of performing assets, align incentives through GP commitments (often 9–10% or more of carried interest rolled), and attract fresh capital. In Nigeria, for example, continuation funds are viewed as tools to manage duration mismatches in a market where exits averaged six to seven years.

Globally, GP-led volumes grew at a 49% CAGR in recent years, outpacing M&A, and now represent about 15% of all private equity exits. African data is less granular, but AVCA polling shows GPs and LPs both favour GP-led structures (76% and 62% respectively among those who have used or considered them).

Pricing data for African deals remains limited and opaque. Globally, LP portfolios traded at an average 87% of NAV in H1 2026, with buyouts near 91% and venture at 79%. African transactions are understood to clear at wider discounts, though specific figures are rarely disclosed. Sango Capital has noted paying below NAV in its deals without quantifying the level.

Notable transactions and a maturing pipeline

Sango Capital’s May 2026 acquisition of more than $120 million in NAV across four African funds from a non-African institutional seller stands as the largest documented LP-led secondary on the continent. The portfolio included roughly 30 companies in financial services, consumer goods, infrastructure and light manufacturing, spanning 14 markets. Sango funded it with balance sheet capital and commitments from commercial investors, including first-time US family offices allocating to Africa.

The Johannesburg-based manager has built a track record in the space. Prior deals include tail-end interests in Medu Capital (2019), Synergy Private Equity Funds I and II (2024 and February 2025), and a continuation vehicle on its own first fund in April 2026. In July 2026, Sango also took on management of approximately $458 million in assets from Kuramo Capital Management via a continuation vehicle for US endowments and foundations seeking liquidity.

Other activity includes smaller LP roll-ups and sponsor-to-sponsor deals. Examples from recent years feature Metier acquiring a stake in Watu Credit from BluePeak Private Capital, and various DFI-led portfolio sales. While volumes remain modest compared with global benchmarks, the pipeline is expanding as more 2015–2018 vintage funds approach the end of their terms.

Note: Amounts are reported NAV transferred; pricing discounts not publicly quantified. Data cross-checked against AVCA reports and specialist coverage; many smaller deals remain undisclosed.

Constraints facing the market

Liquidity constraints remain the top concern for 73% of LPs and 62% of GPs in AVCA’s 2026 sentiment survey. Valuation misalignment, cited by roughly one-third of respondents, is exacerbated by limited comparable transactions and subjective NAVs in many African markets. Regulatory and governance frameworks for continuation vehicles and secondaries are still developing, particularly in Nigeria and South Africa, raising issues around conflicts of interest, LP consent and fair process.

Global secondaries giants have shown limited appetite for African portfolios, creating a niche filled by local players such as Sango. DFIs have historically provided much of the capital but are reducing exposure in some cases, while commercial LPs quietly exit. Evergreen vehicles are used or planned by 61% of LPs but offered by only about one-third of GPs, reflecting documentation gaps.

Outlook and what to watch

Secondaries are expected to remain a structural feature of African exits, with trade sales and sponsor-to-sponsor deals likely to dominate amid macro headwinds and longer hold periods. Activity in 2026 has already included larger continuation structures, and pipeline commentary from managers points to deals two to three times the size of Sango’s $120 million transaction in coming quarters.

Focus areas include greater standardisation of processes, improved price discovery, and increased participation from African pension funds and family offices. As more funds reach maturity, the balance between LP liquidity needs and GP desire to extend high-performing assets will shape transaction flow, particularly in fintech, financial services and infrastructure across West, East and Southern Africa.

What matters next is whether local managers can scale these solutions without relying on DFIs, and whether pricing tightens as more capital targets quality African portfolios.

Tracking secondaries on Africa Markets

Readers can explore related transactions through the deal intelligence section, including profiles such as the Sango Capital secondary transaction and recent activity like Standard Bank’s investment in OPay. The trading demonstration allows verified members to observe how periodic call auctions establish clearing prices for shares in listed African private companies using sandbox funds. Early access at early access provides access to these tools and weekly updates such as the Africa Markets Weekly on exits and liquidity.

Sources

• 2025 African Private Capital Activity Report — African Private Capital Association
• Why Africa's biggest-ever secondary deal isn't really about Sango Capital — Ecofin Agency
• Sango Capital closes $120m secondary transaction — Africa Private Equity News
• The rise of the African secondaries market — Ghost Mail / DealMakers
• Africa: Kuramo Investors Move $458m in Africa Assets to Sango Capital — allAfrica / Bloomberg
• State of the market: what's next for private equity secondaries — Pantheon
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