Sub-Saharan Africa has been top of mind for many institutional investors in the past few years, as indicated by record fundraising totals, according to Molly Brister, Manager, Research, EMPEA.

The latest EMPEA’s Year-end 2015 Industry Statistics has revealed that fund managers raised $3.6bn for Sub-Saharan Africa in 2015, the second highest annual fundraising total for the region since EMPEA began tracking fundraising in 2006.

This came on the back of 2014’s total of $4.3bn raised, indicating that limited partner interest remained strong, even as macroeconomic challenges such as currency volatility and declining oil prices contributed to reduced growth expectations for many of the region’s economies.

Growth capital vehicles accounted for 70% of all funds raised for Sub-Saharan Africa in 2015, whereas infrastructure funds accounted for 14% of the capital raised.

Moreover, West Africa-focused funds attracted 14% of capital raised in 2015, their largest share in the last five years.

According to the findings, investments in Sub-Saharan Africa decreased both by number and total capital invested from 2014 to 2015.

These declines were driven in part by East Africa, which witnessed more than a 50% decline in the number of deals year-on-year, with a drop-off particularly striking in the second half of the year.

Conversely, deals in Nigeria and South Africa increased year-on-year, indicating opportunities remain in Sub-Saharan Africa’s two largest markets.

Overall, West Africa attracted more deals than any other sub-region with 37 in 2015.

Fund managers navigated a shifting macroeconomic environment in 2015 not only by looking to diverse fund strategies, but also by investing in companies suited to withstanding headwinds and positioned to capitalize on longer-term market fundamentals.

Specifically, fund managers deployed ever more capital in sectors that tap into attractive demographic trends.

Among all sectors, consumer goods accounted for the most deals (25%) in 2015, while utilities attracted the most capital (28%).

Brister said that looking forward, there are a few key trends to watch in 2016 related to fundraising and investment.

“First, while LPs have yet to show signs of declining optimism for the sub-continent, fundraising totals will likely be lower than in previous years since many of the largest private fund managers closed vehicles in 2014 and 2015,” she told Africa Global Funds.

“Second, we will likely see continued interest by investors in consumer-facing sectors and in infrastructure projects and platforms, as fund managers will likely seek out businesses that tap into the attractive demographic trends that characterize many African markets,” she added.