Ezdehar upsizes second Egypt PE fund, overshoots target to make first close

 Ezdehar upsizes second Egypt PE fund, overshoots target to make first close

Ezdehar, a mid-market private equity firm chasing deals in Egypt, has marked the first close of its second fund with commitments of $168 million, overshooting its target of garnering $100-120 million for the interim close.

Ezdehar Mid-Cap Fund II (EMF II) is now aiming to make a final close at $180 million by the end of this year.

The PE firm was previously aiming at a corpus of $150 million for the new fund. This has been upsized by 20% now.

Combined with existing EMF I investments, the first close of EMF II brings Ezdehar’s assets under management to over $250 million. This makes Ezdehar one of the largest Egypt-dedicated fund managers.

The second fund saw returning Limited Partners from EMF I with increasing commitments from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), CDC Group Plc and FMO.

Additionally, EMF II was able to attract new LPs including International Finance Corporation (IFC), the Egyptian American Enterprise Fund (EAEF), and the Belgian Investment Company for Developing Countries (BIO).

The PE firm had targeted the first close of the fund a year ago but it was delayed.

The Capital Quest had previously reported about LP commitments coming from FMO, the EBRD, the EIB and IFC.

The fund’s strategy will be to seek minority and selective majority stakes in six to eight small and mid-cap companies with investments ranging from $5 million to $30 million per company, primarily in Egypt.

This fund is likely to be more than twice the size of its predecessor, which scooped up $84 million as against its target of $100 million in 2017.

The first fund had invested in AluNile, Global Leasing Company, Dsquares, Family Group, Rich Foods Industries and Al Tayseer HC Group. It sold its entire stake in loyalty services provider Dsquares to Lorax Capital Partners.

Ezdehar was founded in 2014 by Emad Barsoum, who previously co-founded Africa-focused private equity fund manager 8 Miles, following the Arab Spring.

EMF II will invest in businesses across important growth sectors in Egypt, including consumer and retail, business services, education, healthcare, and manufacturing.

Vivek Sinha

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