25-09-2023; Mauritius. Mediterrania Capital Partners, a Private Equity firm focused on growth investments for SMEs and mid-cap companies in North Africa and Sub-Saharan countries, is pleased to announce that Cassa Depositi e Prestiti S.p.A. (CDP Group) will be investing €20 million in the new MC IV fund to support mid-cap companies in North and Sub-Saharan Africa.
Following the strategy of the previous Mediterrania Capital Partners funds, MC IV aims to invest up to €350 million in African businesses to help them reach their full potential and generate financial returns for investors. Mediterrania Capital Partners’ funds target mid-size companies operating in sectors crucial for the furtherance of development, including Education, Financial Services, Healthcare, Pharmaceuticals, Construction and Consumer Staples.
2X Challenge Fund
As well as confirming its financial commitment to MC IV, CDP Group has – like DEG, FMO and Proparco already – recognised MC IV as a ‘2X investment’ fund under the “Investments through Financial Intermediaries” criteria stating the fund’s strong commitments regarding “leadership” and “employment criteria” under the 2X Challenge. Launched at the G7 Summit 2018, the 2X Challenge aims to promote women’s economic empowerment in developing countries and has already mobilised billions of dollars of funding for women’s entrepreneurship and employment.
Albert Alsina, Mediterrania Capital Partners’ Founder and CEO, said: “We’re delighted to have CDP Group join MC IV as a first-time investor. Through CDP and Mediterrania’s shared values of social inclusion, environmental responsibility and economic impact, we aim to support mid-cap companies in Africa by helping them build strong frameworks for sustainable growth. Additionally, MC IV’s recognition as a 2X Challenge Fund marks a significant step forward towards advancing women’s empowerment in Africa.”
Paolo Lombardo, CDP Group’s Director of International Development Cooperation, said: “In line with CDP’s 2022-2024 Strategic Plan, we pursue our commitment to invest in the sustainable and inclusive economic growth of private enterprises in emerging economies, with a particular focus on supporting women entrepreneurship. This is also thanks to our collaboration with other multilateral and bilateral development institutions as well as the involvement of partners with renowned local expertise, such as Mediterrania Capital Partners. Through this investment we will support the growth of key businesses for Africa, with benefits for Italian companies as well, to create a shared and lasting development.”
Mediterrania Capital Partners has been investing in Africa since 2013 and it currently manages the funds MC II and MC III which have invested in 15 African SMEs and mid-size companies, delivering aggregated annual revenues of €1.5 billion and employing more than 22,000 people.
Across all its investments, Mediterrania Capital Partners takes a highly proactive and hands-on approach to implementing the portfolio companies’ growth strategy while leading their ESG processes. This approach enables portfolio companies to deliver superior EBITDA and revenue growth rates while promoting responsible and sustainable development.