DFIs participate in $140mn first close Egypt-focused fund

01 Oct 2020

Lorax Capital Partners (LCP)'s LCP FUND II COÖPERATIEF U.A., a generalist private equity fund targeting primarily growth capital investments in SMEs and mid-market companies in Egypt, has reached a USD 140 million first close.

The European Investment Bank (EIB) has signed a commitment of USD 22 million. Other international investors include the European Bank for Reconstruction and Development, International Finance Corporation, Proparco and the Egyptian American Enterprise Fund.

The fund manager, LCP FUND MANAGER BV will adopt a hands-on value-adding investment strategy and will seek to invest in enterprises with robust growth potential in important economic sectors including education, healthcare, manufacturing and services.

The fund seeks to contribute to the development of the private sector in Egypt by increasing access to capital for local SMEs and mid-market companies and supporting their growth and continued institutionalisation. Additionally, the Fund’s portfolio companies are anticipated to contribute to strong job creation.

The EIB’s investment comes in the framework of the Bank’s Economic Resilience Initiative Risk Capital Facility (ERI RCF). The facility seeks to foster private sector development and job creation through investments in venture capital and private equity funds. It blends EIB own resources with donors resources from the Economic Resilience Initiative Fund to unlock more opportunities for the private sector in the southern Mediterranean region. 

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB investment is funded under the Bank’s Economic Resilience Initiative Risk Capital Facility (ERI RCF). ERI creates jobs and economic growth in the region by investing in key infrastructure and in private sector development. It also may help migration flows. The facility seeks to foster private sector development and job creation through investments in venture capital and private equity funds. It blends EIB own resources with donors resources from the ERI Fund to unlock more opportunities for the private sector in the southern Mediterranean region. 

 

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