thesis subject :
Private Equity Valuation and Exit Strategies in Madagascar: Practices, Challenges, and the Dynamics of Cognitive Governance
Thesis start date :
05 January 2026
Name of thesis supervisor(s) :
Pascal BARNETO
Thesis abstract :
In Madagascar, private equity is an emerging financing solution for SMEs over the past two decades, within a context marked by informality and information asymmetry. this thesis aims to examine the valuation mechanisms and exit strategies of private equity investors in this context, through a qualitative approach based on semi-structured interviews and case studies.
Its central research question would be: how do private equity actors in Madagascar value their portfolios and design exit strategies in a context marked by informality, asymmetric information, and a specific form of cognitive governance?
As announced, the methodology employs a qualitative hypothetico-deductive approach, supported by semi-structured interviews conducted with 30 to 40 fund managers, entrepreneurs, and regulators; as well as 3 to 5 investment cases studies. Thematic analysis will be caried out using NVivo software, adopting a critical realism framework that integrates both objective and interpretative logics of stakeholders.
The research hypotheses suggest the use of hybrid valuation methods (financial and qualitative) and alternative exits (industrial divestments and founder buyouts), and the role of cognitive governance in diversifying exit options and formalizing companies through a dynamic of and balanced stakeholder relationships.
Finally, the expected outcomes included insights into actual valuation practices, identification of cognitive and relational levers influencing exit decisions, and developing of models tailored to the Malagasy context. This thesis also seeks aims to contribute to the African literature on private equity in emerging markets, while offering practical tools to investors and institutional recommendations to enhance transparency and attractiveness of the local capital market.
