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Sunday, 4 October 2020

Lorax raises USD 142 mn from international LPs for new, USD 250 mn private equity fund; EBRD commits USD 10 mn to SPE Capital Partners fund

PRIVATE EQUITY WATCH- Lorax Capital raises USD 142 mn from international limited partners (LPs) for new USD 250 mn private equity fund: Egyptian private equity outfit Lorax Capital Partners has secured commitments of c. USD 142 mn for its SME-focused PE fund, LCP II. Limited partners in LCP II include the Egyptian-American Enterprise Fund and the European Bank for Reconstruction and Development, each of which have committed USD 50 mn to the fund, while the European Investment Bank has kicked in USD 22 mn. The International Finance Corporation (IFC) and the French Development Agency’s Proparco have also made investments, the EAEF said in a statement (pdf) that did not break down how much IFC and Proparco had put in.

We have previously noted that Lorax is targeting a USD 250 mn final close for LCP II, which will primarily focus on long-term investments in Egyptian SMEs.

Separately, the EBRD is investing USD 10 mn in an Egypt and North Africa-focused fund that targets SMEs and small mid-cap firms primarily in Egypt, Tunisia, Morocco, and Jordan, the bank said in a statement. Swicorp-affiliate SPE Capital Partners manages the SPE AIF I LP fund, which focuses on the manufacturing, healthcare, and education sectors. SPE currently holds a 30% stake in Future Pharma Industries (FPI). This latest funding comes after the EBRD invested USD 20 mn into the fund last year and the IFC committed USD 20 mn in April in response to the pandemic.

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