Back to the complete issue
Thursday, 24 March 2022

EFG Hermes’ private equity units eye fresh investments + acquisitions

EFG Hermes-led Vortex Energy, RX Healthcare, and Education Fund eyeing fresh investments + acquisitions: EFG Hermes’ Egypt Education Fund, and its healthcare arm, RX Healthcare, are studying new investments and acquisitions, head of private equity and asset management Karim Moussa told Enterprise, confirming a story published in Al Mal.

The education fund plans to invest some USD 30-40 mn over the next 18 months in two different transactions, which will be added to the fund’s portfolio, and plans to make its first investment in a nursery after focusing solely on the K12 sector since its launch.

Some 60% of the fund’s capital has already been invested: The fund completed its third and final close last year, which saw it land commitments worth USD 150 mn from investors including the Sovereign Fund of Egypt, 60% (c. USD 90 mn) of which it has already deployed in various investments in the sector, Moussa said. The fund plans to invest the rest of its capital (c. USD 60 mn) over the next 12 months.

RX Healthcare eyes pharma acquisitions: Meanwhile, RX Healthcare Management is looking into two or three majority stake acquisitions of pharma companies in transactions valued at between USD 200-500 mn apiece, to follow its acquisition of United Pharma in 2019. The healthcare platform has allocated some EGP 1 bn for investment since its launch, Moussa said, adding that it plans to finish pumping the entire allocated amount by 2024.

Vortex Energy looks to make second close on its fourth fund, eyes expanding investments to EV sector: EFG’s renewable energy platform plans to reach a second close worth about USD 550 mn for its Vortex Energy IV fund within the next two years, bringing its total capital to USD 750 mn. The fund made its first USD 200 mn close last year, and is now planning to expand its investments to more sectors, including EV batteries and charging stations.

EFG is also looking into launching a new MENA tech fund, similar to its education, healthcare, and energy-focused platforms, said Moussa, who is co-CEO of the investment bank at EFG Hermes in charge of the buy side of the platform.


OTHER INVESTMENT NEWS-

Bakery chain TBS is looking to spend EGP 500 mn adding a new production line at its factory, Al Mal quotes co-founder Sameh El Sadat as saying. The company is currently in negotiations with three local banks for a loan, and hopes to secure the funding this year. TBS expects its new production line — set to come online in 2023 — will allow the company to double its annual sales to EGP 1 bn. The production line will be added to TBS’s joint venture with Mansour Group, which was inaugurated last year.

German companies kick the tires on Egypt investments: A number of German companies are considering making fresh investments in greenfield and brownfield projects in Egypt, including in the renewable energy, smart transportation and water desalination sectors, according to a cabinet statement out yesterday. This came during a meeting between Prime Minister Moustafa Madbouly and a delegation of 16 German firms who are currently visiting Egypt to discuss investments. The statement did not disclose which companies were present at the meeting.

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. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.