Asset management and private equity in Mozambique - Part V

Diana Ribeiro Duarte, Pedro Capitão Barbosa, Mara Rupia Lopes and Clara Almeida signed the article "Asset management and private equity in Mozambique - Part V", published in Lexology.

«V – PRIVATE EQUITY FUNDS

1. Background

Notwithstanding the similarities with the securities and real estate investment funds, the particularities of private equity funds, designed to invest in companies with a high growth potential, have justified the existence of a specific legal regime to regulate their activity.

The private equity funds represent a form of alternative financing for the Mozambican economy, where access to credit is considered one of the major obstacles to investment.

However, the lack of regulation by the Bank of Mozambique (“BM”), namely the absence of rules governing the fund accounting and the composition of the fund portfolio seem to correlate directly with the low acceptance of these financial vehicles in the Mozambican financial system (…) ».

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