Ezdehar Egypt Mid-Cap Fund

North Africa,Africa Manufacturing

Ezdehar Management is a first-time fund manager founded in 2014 by Emad Barsoum, who previously co-founded Africa-focused private equity fund manager 8 Miles.

The Egypt Mid-Cap Fund was established by Ezdehar Management in 2014 in response to unmet demand for investment in Egypt following the Arab Spring, particularly in the less penetrated SME segment.

The fund manager team comprises Egyptian nationals who have a mix of investment and operational experience both in Egypt and internationally.

The fund has a target size of $100 million with a hard cap of $120 million.

Our investment

In 2016, CDC invested $15 million in Ezdehar. In 2017, the European Investment Bank (EIB) also invested $15 million in the fund, which was the first investment in an Egyptian fund since 2011. Other investors include the European Bank for Reconstruction and Development and Dutch DFI FMO, alongside local investors. The fund looks for a typical investment of between $5 million and $15 million.

Expected impact

The fund will target SMEs and family businesses, which are currently overlooked by most investors. It will invest in sectors that take advantage of Egypt’s large consumer base, such as FMCG, manufacturing and healthcare. The Ezdehar team will also work closely with investee company management teams to help scale up operations.

By providing growth finance and know-how to small and medium-sized businesses, the fund will contribute to local job creation and economic growth. This is especially important given the aftermath of the Arab Spring, which exacerbated high youth unemployment rates and led to a flight of foreign direct investment (FDI) in the country.

Environmental and social aspects

We will work closely with the fund manager to develop and implement an Environmental and Social Management System (ESMS).

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, North Africa
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
Egypt
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Manufacturing
Website:
http://www.ezdehar.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Ezdehar Management B.V.
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
September 2016
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$15m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Netherlands

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Nile Aluminum & Metals Company S.A.E. (AluNile)

Nile Aluminum & Metals Company S.A.E ("AluNile") is a leading designer, fabricator and installer of a range of architectural façade products - including curtain walls, aluminum doors/windows and processed flat glass - that are used in residential, commercial and office buildings in Egypt.

View investment details

Egypt Africa, North Africa Manufacturing March 2017 Active
Global Leasing Company Egypt Africa, North Africa Financial services March 2018 Active
Dsquares Egypt Africa, North Africa Other consumer services May 2018 Active