Challenges and opportunities in the Tunisian private equity sector

Abstract

Most of the studies and research analyzing the private equity ("PE") sector in the Middle East North Africa ("MENA") region tend to focus more on the Middle East and less on North Africa. The case of Tunisia is probably the most appealing within the North African region regarding the transformational phase the industry is going through there. Accordingly, the main objective of this thesis will be to provide some keys to understand the dynamics of private equity in Tunisia. The recent uprising has shown how ardently people are seeking a radical change in the current political and socio-economic model. Studying the private equity sector in Tunisia whilst balancing the underlying hurdles and opportunities, is certainly a first step towards understanding a complex but fundamental issue: how and to what extent can the promotion and the revitalization of investments in the country's private sector constitute a key lever for the government to meet the social claim for a sustainable development? First of all, I believe it is essential to apprehend the backdrop of Tunisian private equity by analyzing global trends of the private equity industry, the rise of interest in emerging markets as well as the current macro environment in Tunisia. I will then examine the drivers and fundamentals of PE investment in Tunisia by analyzing the current framework in place and the specificities of the private equity lifecycle - from fundraising to exit. Finally, I will endeavor to investigate the hurdles various stakeholders might face as well as the opportunities they might enjoy, and I will ultimately highlight some of the options available to overcome obstacles and take advantage of favorable circumstances.