Back to the complete issue
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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.