PE and VC basics and the Ethiopian landscape

Module 01 / 5 · 60 min · Free preview

How private equity and venture capital funds are built, paid and measured, and who invests in Ethiopia under which rules.

In this module you will learn to

Explain the PE and VC asset class and the stages from seed to buyout
Describe a GP/LP fund structure, management fees, carried interest and the distribution waterfall
Read the J-curve and the main return measures: IRR, MOIC, DPI, RVPI and TVPI
Describe the Ethiopian PE and VC landscape, the laws that frame it and its main constraints

Built on

Erudite Africa course specification 3.j: Private Equity and Venture Capital, Levels 1 and 2 (October 2026)
Erudite Africa Training Module: Ethiopian Context, program overview and regulatory register (October 2026)
Investment Proclamation No. 1180/2020, Investment Regulation No. 474/2020 and Ethiopian Investment Board Directive No. 1082/2025; Commercial Code Proclamation No. 1243/2021
Capital Market Proclamation No. 1248/2021; ECMA Directive No. 980/2024; ECMA collective investment scheme and venture capital fund rules (reported, to confirm); ESX Rulebook (December 2024)
NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, SBB/92/2024; NBE Monetary Policy Committee release No. 7 (July 2026)
IFC Performance Standards on Environmental and Social Sustainability, GIIN IRIS+ and the 2X Criteria

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.