MOROCCO– AfricInvest, a leading pan-African mid-cap-focused private equity firm, has announced the final close of its North African Fund, Maghreb Private Equity IV (“MPEF IV”).
MPEF IV is a 10-year fund managed by AfricInvest that will invest in small and medium enterprises in North Africa including Algeria, Egypt, Morocco, and Tunisia, looking to take substantial minority stakes in those enterprises.
The fund’s strategy will target companies that are well-established in their local markets and have the potential to scale up their activities at the regional level, in the Mediterranean basin, and across the African continent.
The African Development Bank joined the third and final investment round, committing EUR20 million (US$23 million) to the fund.
The fund’s total capital commitments rose to EUR194 million (US$222 million), in line with the fund’s target size.
According to AfricInvest, the fund reached a first close of EUR152 million in November 2017 and a second close of EUR173 million in October 2018.
Other backers of the fund included CDC UK, EBRD, FMO, DEG, EIB, IFC, BIO, IFU, SIFEM, Proparco, OeEB and a prominent South African fund of funds.
“The MPEF IV final close is a powerful affirmation of our LPs’ continued support for the North Africa region and their belief that North African companies can create significant value across and beyond the region.” AfricInvest Founding Partner Ziad Oueslati said.
Executive Partner Brahim El Jai welcomed the investment by the African Development Bank, adding that AfDB enable the MPEF IV team to continue identifying, screening, funding and supporting the most promising entrepreneurs and innovators across North Africa.
“MPEF IV is a vehicle perfectly aligned with our strategic goals to strengthen the capabilities of ambitious midsize companies in North Africa to expand into new markets in sub-Saharan Africa. Our investment in MPEF IV will enable the growth of high value cross-border investment and strengthen regional linkages, generating valuable foreign exchange and stimulating job creation,” said Dr. Abdu Mukhtar, Director of Industrial and Trade Development at the African Development Bank.