BIO invests $10m in Ezdehar fund
The Belgian Investment Company for Developing Countries (BIO) has made a $10 million equity investment in the Ezdehar Mid-Cap Fund II, a private equity fund focused on Egypt.
Ezdehar Mid-Cap Fund II is Ezdehar Management’s second fund and BIO’s first investment in a fund in Egypt. Like its predecessor fund, it will target SMEs and family businesses, which remain largely overlooked by the broader investing community.
The team will take a steering role in driving all-around institutionalisation at portfolio companies, with a particular attention to governance. This is expected to foster growth and generate a strong developmental impact.
The fund will provide long-term equity financing to SMEs which constitute roughly 90% of Egypt’s businesses but face difficulties to tap growth financing. This is expected to: contribute to the emergence of regional leaders for sustainable economic development, enhance Egyptian SMEs’ limited ability to export and help create jobs.
The investment will help support a burgeoning PE industry, that has been severely impacted by a succession of crises.
Ezdehar’s thesis is built around institutionalisation, which should be the primary driver for returns. As such, the manager lays a strong focus on improving the technical capacity, management teams and governance of portfolio companies.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.