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Monday, 24 December 2018

EFG Hermes’ Egypt Education Fund is oversubscribed at first close

EFG Hermes’ Egypt Education Fund is oversubscribed at first close: EFG Hermes’ private equity arm has hit first close on its Egypt Education Fund with total commitments of USD 119 mn, according to a company press release (pdf). The commitments, which are well above an initial target of USD 50-100 mn, were raised in just a little over six months amid a strong appetite from both domestic and foreign investors.

The fund is part of a larger USD 300 mn education platform with Dubai’s GEMS Education that aims to build a portfolio of 30 schools serving some 40k students within three years. The fund aims to reach final close in 2019, raising another USD 30 mn or so in capital. “We expect to make a strong impact in the industry and deliver attractive returns to our investors,” said EFG Hermes’ Head of Asset Management and PE Karim Moussa. The firm has also decided to seed USD 15 mn into the fund, as part of its wider strategy to enhance its PE operations.

First investment already on board: The EFG-GEMS platform acquired four schools in an EGP 1 bn transaction earlier this year and warehoused the assets on EFG Hermes’ balance sheet. The portfolio will now be transferred to the platform, which is 50-50 owned by the fund and GEMS.

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