South Africa's private equity market has demonstrated remarkable resilience in the face of challenging macroeconomic conditions. Deal activity in 2025 exceeded expectations, and early indicators for 2026 suggest continued momentum — particularly in sectors benefiting from energy transition investment and digital infrastructure growth.
Deal Flow and Valuation Dynamics
Higher interest rates have moderated valuation multiples across most sectors, creating opportunities for disciplined acquirers with strong balance sheets and patient capital. Sellers are adjusting their expectations, and we are seeing more transactions close at valuations that reflect sustainable cash flow rather than peak-cycle enthusiasm.
Infrastructure, renewable energy, healthcare, and financial technology continue to attract the most interest from both domestic and pan-African private equity funds.
Due Diligence in Focus
The quality of financial due diligence has never been more important. In a higher-rate environment, the assumptions underlying a target's financial model — revenue growth, margin trajectory, working capital requirements — are subjected to much more rigorous scrutiny by both buyers and their lenders.
We are seeing increased demand for quality of earnings (QoE) analysis and tax due diligence, particularly for transactions involving businesses with complex revenue recognition, related-party arrangements, or exposure to SARS disputes.
Exit Strategies
For funds approaching the end of their investment period, the exit environment remains challenging but workable. Trade sales continue to dominate as the primary exit route, while secondary buyouts are becoming more common as a way of providing liquidity without the complexity of a public market listing.
How We Add Value
Our team provides financial due diligence, tax structuring advice, and post-acquisition integration support for private equity transactions across South Africa. We combine technical depth with practical commercial understanding to help our clients make confident investment decisions.