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Thursday, 25 March 2021

Meet the players interested in getting in on the Egypt Mid-Cap Fund II

Everyone wants in on Egypt Mid-Cap Fund II, which will close in May: Private equity firm Ezdehar may be looking at a first close for its second fund, worth USD 120 mn, at the end of May, founder and managing director Emad Barsoum tells us. The European Bank for Reconstruction and Development (EBRD), the European Investment Bank, the Sawiris family’s Gemini Holding, the UK's CDC and the Netherlands’ FMO have all committed capital to the Egypt Mid-Cap Fund II, will look at mid-sized investments in the manufacturing and pharma sectors. . They may also be joined by the International Finance Corporation (IFC), Barsoum revealed to us.

The fund’s final close will reach USD 180-200 mn at the end of the year, Barsoum says, as Ezdehar is looking to raise an additional USD 50-100 mn. Investors that may join the final close are the Egyptian-American Enterprise Fund (EAEF), Germany’s DEG Impact, and African fund of funds Sango, he adds.

Look for M&A news from Ezdehar in the coming weeks: Ezdehar’s first fund, the Egypt Mid-Cap Fund I, is planning an acquisition in the chemical industry, Barsoum told us. The transaction will be announced in the next few weeks.

Ezdehar had previously told us that it will exit two high-growth companies this year as it nears the end of its five-year holding period. These companies are seeing annual growth of 30-40%, Barsoum told local media. This comes after it sold its full 22.5% stake in loyalty services provider Dsquares to Lorax Capital Partners in October.

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