Ezdehar Mid-Cap Fund II

Equity : December 2021

BIO has invested USD 10 M in the Ezdehar Mid-Cap Fund II, a Private Equity Fund focused on Egypt.

Amount

€ 8,844,000.00

Type of investment

Equity

Development impacts

Local economic growth
Private sector consolidation/innovation
Promotion of ESG best practices

Beneficiary locations

Africa: Egypt

Middle East:

Investment field

Investment Companies & Funds

Activity

KK.64.300 SME Fund

Organisation

Ezdehar Mid-Cap Fund II

Website

https://ezdehar.com/

Domicile

Netherlands

More investments in

Ezdehar Mid-Cap Fund II

Equity $ 1,700,000.00 (2021)

Ezdehar Mid-Cap Fund II is Ezdehar’s second fund and BIO’s first investment in a fund in Egypt. Like its predecessor fund, it will target SMEs and family businesses, which remain largely overlooked by the broader investing community.

The team will take a steering role in driving all-around institutionalisation at portfolio companies, with a particular attention to governance. This is expected to foster growth and generate a strong developmental impact.

Development impacts

Local economic growth
The fund will provide long-term equity financing to SMEs which constitute roughly 90% of Egypt’s businesses but face difficulties to tap growth financing. This is expected to: contribute to the emergence of regional leaders for sustainable economic development, enhance Egyptian SMEs’ limited ability to export and help create jobs.
Private sector consolidation/innovation
The investment will help support a burgeoning PE industry, that has been severely impacted by a succession of crises.

Ezdehar's thesis is built around institutionalization, which should be the primary driver for returns. As such, the Manager lays a strong focus on improving the technical capacity, management teams and governance of portfolio companies.
Promotion of ESG best practices
Ezdehar has identified E&S as a core focus area, aiming to mature its own internal processes and capabilities. The growing institutionalization of those ESG practices will be instrumental to champion and demonstrate best practices.

Setting up good E&S and governance practices is a necessary part of Ezdehar's institutionalization thesis. The Manager typically invests in companies with largely informal processes but exits well-governed institutions with good E&S practices.

The Manager has so far had a particular focus on improving jobs quality, in a country where the lack of regulation continues to impact working conditions in the private and informal sectors.