secondaries private-equity africa sango-capital liquidity exits

Sango Capital’s $120M secondary marks maturing Africa private markets

Sango Capital’s acquisition of more than $120 million in net asset value from an institutional LP in May 2026 is the largest documented LP-led secondary on African assets to date. It underscores growing liquidity options in a market where exits reached 81 in 2025, with secondaries comprising 26% of them.

  • Bryan Smith
  • 7 min read

In short

  • Sango Capital closed the largest documented LP-led secondary on African assets, acquiring >$120m NAV across 30 investments in 14+ markets in May 2026.
  • Secondaries represented a record 26% of 81 exits in 2025, as exit conditions remained the top concern for 73% of LPs per AVCA’s 2026 report.
  • Average African PE holding periods have extended to 6.4 years, driving demand for GP- and LP-led liquidity tools amid constrained traditional exits.
  • Local specialists are filling the gap left by global secondaries giants, who typically require larger deal sizes, bringing in first-time commercial allocators.
  • Secondary sales provide practical liquidity for VCs and early investors in companies like those in fintech, supporting capital recycling in a concentrated market.

Sango Capital’s $120 million NAV acquisition

In May 2026, Johannesburg-based Sango Capital completed the acquisition of more than $120 million in net asset value across four African-focused funds from an institutional investor rebalancing its global portfolio. The deal, funded by Sango’s balance sheet and commitments from commercial investors including first-time Africa allocators, represents the largest documented LP-led secondary transaction on African private assets.[1][2]

The portfolio comprised approximately 30 investments operating in more than 14 African markets, spanning financial services, consumer and FMCG, infrastructure, and light manufacturing. Sango described the transaction as providing swift liquidity to the seller while positioning the firm to generate value for its LPs through active management of the underlying holdings.

Richard Okello, speaking on the deal, highlighted the firm’s 15 years of experience underwriting complex African portfolios, sourcing off-market opportunities, and managing smooth asset transfers with local GPs.

Exit activity and the role of secondaries

Africa recorded 81 exits in 2025, a 27% increase year-on-year and the second-highest annual total on record, according to data referenced in DealMakers analysis. Sponsor-to-sponsor solutions, including secondaries, accounted for 26% of those exits — a record share.[3]

According to the African Private Capital Association’s (AVCA) 2026 Investor Sentiment & Outlook report, exit conditions remained the top concern for 73% of LPs and 62% of GPs. Liquidity constraints continue to influence fundraising and deployment, even as dealmaking sentiment improves on stronger pipelines and more attractive entry valuations.

In private equity, average holding periods in Africa have lengthened to 6.4 years, compared with shorter cycles in North America and Asia. This extension, combined with pressure on fund lifecycles and DFI mandates that historically limited secondary sales, has created demand for structured liquidity tools.

Secondaries provide an alternative to traditional trade sales or IPOs, which remain constrained. In 2025, trade sales led exits, but secondaries gained traction as GPs and LPs sought capital recycling amid global uncertainty.

LP-led vs GP-led dynamics in Africa

Sango’s transaction was LP-led, allowing an institutional investor to exit its commitments without waiting for underlying portfolio realisations. Such deals have become more common as commercial LPs rebalance away from Africa while DFIs, which anchor much of the continent’s private capital, remain cautious on secondary discounts or mandate restrictions.

Global secondaries giants have shown limited appetite for African portfolios, with average deal sizes in mature markets far exceeding the $100 million threshold many require. This has created a niche for local specialists like Sango, which has executed multiple secondaries including earlier transactions involving Medu Capital, Synergy funds, and its own continuation vehicle.[2]

GP-led secondaries, such as continuation funds, are also gaining interest. AVCA polling showed that among GPs who have offered or considered liquidity tools, GP-led structures were preferred by 76% and LP-led by 62%. These mechanisms allow managers to extend high-performing assets beyond original fund terms while providing partial liquidity to LPs.

Valuation misalignment remains a friction point, cited by 34% of LPs and 37% of GPs. The relative scarcity of comparable transactions in many African markets makes NAV determinations more subjective than in deeper markets.

Private markets performance context

Africa’s private equity market (excluding South Africa) saw aggregate deal value rise 18% to $17.3 billion in 2025, despite subdued volumes — the lowest in three years. Kenya led by value at $5.83 billion, overtaking Nigeria’s $2.39 billion, while West Africa remained most active by deal count.[4]

Fundraising rebounded in early 2026, with $870 million in disclosed commitments in Q1. Private capital activity showed resilience, with large deals driving value even as early-stage venture volumes contracted.

In venture, debt financing has played a larger role, reaching record levels in 2025 and supporting cash-flow positive models in fintech and cleantech. However, secondary sales have become a critical liquidity route for early investors in companies such as Moniepoint, where partial exits have delivered fund returns.

Recent high-profile venture deals, including those by Flutterwave, Moove, and others, have created opportunities for secondary participation by later-stage or strategic buyers seeking exposure without full primary deployment.

Metric 2025 Figure Change Source
Exits (total) 81 +27% YoY DealMakers/AVCA
Secondaries share of exits 26% Record DealMakers
PE deal value (ex-SA) $17.3bn +18% DealMakers
Sango secondary NAV >$120m Largest LP-led Sango/Africa Global Funds
Avg. African PE holding period 6.4 years Extended Market reports

Implications for LPs, GPs and founders

For institutional LPs, secondaries offer portfolio rebalancing without forced sales at depressed prices. First-time Africa allocators participating in Sango’s deal signal broadening interest from commercial capital as DFIs create space.

GPs benefit from extended hold periods on quality assets and the ability to demonstrate liquidity to their own LPs, aiding future fundraising. The average time to final close for funds shortened in early 2026, reflecting improved sentiment when liquidity pathways exist.

Founders see mixed effects. Secondary sales among early investors can reduce cap table overhang and align incentives with growth-focused later backers. However, discounted secondary transactions may set valuation precedents that affect future primary rounds. In successful companies, partial secondaries by VCs have allowed recycling into new opportunities while retaining upside.

The market remains concentrated. Activity clusters in Nigeria, Kenya, Egypt, and South Africa, with multi-country portfolios like Sango’s providing diversification that appeals to buyers.

What to watch next

Continued growth in sponsor-to-sponsor transactions and continuation vehicles will be key indicators of secondaries maturation. AVCA and DealMakers data for full-year 2026 will show whether secondaries maintain or expand their 26% share of exits.

Watch for additional LP-led deals above $100 million, potential entry by international secondaries platforms at scale, and greater DFI participation in structured liquidity solutions. Regulatory developments supporting share transfers and fund restructuring in key jurisdictions such as South Africa, Nigeria, and Kenya could accelerate activity.

Broader private markets resilience — evidenced by $3.7 billion in H1 2026 deal value despite lower volumes — suggests that where liquidity improves, deployment conviction follows. The Sango transaction illustrates how local expertise can bridge the gap left by global players, potentially unlocking trapped capital estimated in the tens of billions across ageing African portfolios.

Increased transparency on realised multiples and holding-period returns will help narrow valuation gaps, supporting more efficient secondary pricing in 2027 and beyond.

Sources

Researched with AI from public sources and edited by the Africa Markets team before publication. It is information, not advice. See our Disclosures.

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