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Tuesday, 1 February 2022

Ezdehar reaches USD 168 mn first close of EMF II fund

Ezdehar reaches USD 168 mn first close of EMF II fund: Private equity firm Ezdehar Management has reached the first close of its Mid-Cap Fund II (EMF II), overshooting its USD 100-120 mn target to book commitments totalling USD 168 mn, the firm announced in a statement (pdf) yesterday evening. The close means that Ezdehar now has more than USD 250 mn in assets under management between its two funds, making it one of the largest Egypt-focused fund managers.

About the fund: Ezdehar plans to deploy the capital by purchasing majority and minority stakes in 6-8 small to mid-cap companies with an individual ticket size of USD 5-30 mn. It will target companies in growth sectors such as consumer and retail, business services, education, healthcare, and manufacturing. Pharma and F&B firms are also on the list, Ezdehar founder and Managing Director Emad Barsoum previously told us.

The IFC is the latest LP to announce a commitment, saying that it had invested USD 20 mn in the fund.

It joins a number of other development finance institutions: The European Bank for Reconstruction and Development has contributed USD 25 mn, the UK’s CDC is in with USD 25 mn, the European Investment Bank has provided USD 15 mn, and Dutch development bank FMO has provided USD 20 mn. The Belgian Investment Company for Developing Countries (BIO) and the Egyptian-American Enterprise Fund have also made undisclosed commitments to the fund, Ezdehar said.

What they said: “With this fund, Ezdehar was able to significantly expand its investor base to include a unique set of reputable regional and global institutions,” said Emad Barsoum, Ezdehar's founder and managing director.

What’s next: Ezdehar expects to reach a final close of USD 180 mn by the end of 2022, it said in the statement.

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