The European Bank for Reconstruction and Development (EBRD) said Thursday it is committing up to US$ 40 million to SPE PEF III (PEF III), the new fund raised by SPE Capital, to support mid-cap companies in Egypt, Morocco and Tunisia.
PEF III will seek to generate long-term capital gains from equity and equity-related investments in companies in these three North African countries, with the flexibility to also invest in selected countries in sub-Saharan Africa.
Through this investment, the EBRD aims to contribute to the resilience of financial markets and increase the competitiveness of local enterprises by sustaining private equity as an alternative source of funding in North Africa. The investment will broaden the sources of capital to finance the growth of enterprises. The fund will aim to invest in eight to twelve companies, in sectors resilient to market shocks and with high growth potential, such as manufacturing, production and processing of goods, business services, healthcare services, pharmaceuticals and private educational services.
SPE Capital is a prominent fund manager operating in Africa, able to deploy around US$ 500 million, including co-investments in more than 15 companies across the continent.
