AfricInvest, a leading pan-African mid-cap-focused private equity firm, is pleased to announce the second closing of its North African Fund, Maghreb Private Equity IV (“MPEF IV”).
OeEB, the Development Bank of Austria and a prominent South African fund of funds have joined this investment round. Both are first-time investors in AfricInvest funds. FMO, the development finance institution of the Netherlands, also increased its commitment to the fund in this round.
MPEF IV is a 10-year fund managed by AfricInvest, with a target size of EUR200m. It will invest in small and medium enterprises in North Africa (including Algeria, Egypt, Morocco, and Tunisia), looking to take substantial minority stakes. The fund’s strategy will target companies that are well-established in their local markets and that have the potential to scale up their activities at the regional level, in the Mediterranean basin, and across the African continent.
The second closing brings MPEF IV ’s total commitments to EUR172m. A third close is expected before year end, which will bring the fund’s total commitments close to its target size. MPEF IV ‘s first close reached EUR152m with commitments from nine prestigious development finance institutions.
Founding Partner Aziz Mebarek commented, “We are grateful to all our LPs for their continued support for the North Africa region. We are particularly happy to welcome two prestigious investors who are joining AfricInvest as limited partners for the first time. Moreover, we now look forward to the opportunity to build synergies in these LPs’ geographies of South Africa and Austria. These new commitments represent an important step in the life of MPEF IV, helping the fund to move ever closer to its target size, which will enable the team to effectively support emerging regional champions in North Africa.”
“Supporting small and medium-sized enterprises – the backbone of the economy and a key driver for economic development – is one of OeEB’s main goals. By investing in Maghreb Private Equity Fund IV we can contribute to improving access to finance for SMEs in North Africa which allows them to grow and to create jobs in a region where unemployment is particularly high,” explained Michael Wancata, member of OeEB’s executive board.
About MPEF IV
MPEF IV is a 10-year fund managed by AfricInvest, with a target size of EUR200m and a hard cap of EUR250m. It will invest in small and medium enterprises (SMEs) in North Africa (including Algeria, Egypt, Morocco, and Tunisia), looking to take substantial minority stakes. The fund’s strategy will target companies that are well-established in their local markets and that have the potential to scale up their activities at the regional level, in the Mediterranean basin, and across the African continent. By investing in firms showing strong growth potential and with the ambition to expand regionally and internationally, MPEF IV will contribute to the creation of significant value within the companies and to the positive impact they have on their local communities. MPEF IV investments will endeavor to improve SME governance and increase foreign-exchange receipts, and at the same time, create new jobs, increase government tax revenues and more broadly foster regional economic integration. The fund will invest in a range of sectors, with a strong preference for companies focused on export growth. Targeted sectors include IT and telecoms, FMCG, healthcare, education, logistics, agribusiness and a broad range of services (financial, business processing and others). In addition, MPEF IV will aim to promote environmental, social and governance best practices as well as economic inclusion in its portfolio companies.
Ann Wyman: +216 71 189 800
Amina Benabdelkarim: +216 71 189 800
AfricInvest was founded in 1994 and is today among the leading private equity firms in North and Sub-Saharan Africa with around 1.5 billion USD of assets under management across 18 PE funds and sponsored by prestigious DFIs, private and institutional investors from Africa, Asia, Europe and North America. AfricInvest relies on a team of 70 highly skilled investment professionals with over 130 years of cumulative PE experience, operating out of nine offices in Algiers, Cairo, Casablanca, Abidjan, Lagos, Nairobi, London, and Paris. AfricInvest is a cofounder of the Tunisian Private Equity and Venture Capital Association (ATIC, www.atic.org.tn), the Moroccan Private Equity Association (AMIC, www.amic.org.ma), the African Venture Capital Association (www.avca-africa.org), the East African Venture Capital and Private Equity Association (www.eavca.org), and the Emerging Markets Private Equity Association (www.empea.org), and is a member of the Euromed Capital Forum (www.euromedcapital.com).
Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the Development Bank of Austria since March 2008. It specializes in the provision of long-term finance for the implementation of private sector projects in developing countries which create sustainable development. Additionally, OeEB provides technical assistance, which can be used to enhance the developmental impact of projects. For more information, please visit www.oe-eb.at
FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development, and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.0 billion spanning over 92 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information: please visit www.fmo.nl
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