Egyptian American Enterprise Fund invests $50m in LCP Fund II
The Egyptian American Enterprise Fund (EAEF) has announced a $50 million investment in Lorax Capital Partners (LCP) Fund II.
LCP has raised $142 million for the first close of the fund.
LCP Fund II aims to raise up to $250 million to invest primarily in growing companies in Egypt. EAEF is joined by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the European Investment Bank (EIB) and Proparco as investors in LCP Fund II.
In 2015, EAEF appointed LCP as its asset manager and investment advisor in Egypt.
LCP has invested in five companies on behalf of EAEF, which include Fawry, Egypt’s largest electronic payments platform and Sarwa Capital, the country’s leading consumer finance company. Both these companies held successful IPOs within four years of investment. In August, Fawry became Egypt’s first unicorn company after achieving a market capitalisation of $1 billion.
James Harmon, EAEF’s chairman said, “Lorax has been instrumental to EAEF’s success and advancing our goal of developing Egypt’s private sector. I believe Lorax is Egypt’s most successful private equity firm today. Lorax’s success is a testament to the outstanding team that was built over the last five years. In the coming years, I believe Lorax will be the leading private equity firm in the Middle East and North Africa region. Very few if any funds have closed in the region in recent years. It is a tribute to the Lorax team that they could close in today’s difficult environment. EAEF is proud to have seeded Lorax and looks forward to its future growth.”
Ashraf Zaki, LCP’s managing partner commented, “LCP would not be here today without the support of EAEF, which provided the capital that helped establish LCP and led to its first, independent private equity fund. The trust and support placed in LCP by Jim and EAEF’s board allowed LCP to make investments that have not only generated considerable returns but contributed to Egypt’s socioeconomic growth. We are appreciative of EAEF’s support over the years and look forward to working together into the future.”
Reach Africa’s private equity community by publishing a Showcase Article, Job Opportunity or Event on Africa Private Equity News. Contact us at editor@africaprivateequitynews.com for our rate card and more information.