Ezdehar Mid-Cap Fund II
The SDG Frontier Fund has invested USD 1.7 M in the Ezdehar Mid-Cap Fund II, a Private Equity Fund focused on Egypt.
Amount
$ 1,700,000.00
Type of investment
Equity
Development impacts
- Local economic growth
- Private sector consolidation/innovation
- Promotion of ESG best practices
Beneficiary locations
Investment field
Investment Companies & Funds
Activity
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.
Other investments by
SDG Frontier Fund
- Omnivore Agritech & Climate Sustainability Fund III (Equity) $ 3,500,000.00 (2023)
- TIDE Africa II Fund (Equity) $ 2,500,000.00 (2022)
- Uhuru Growth Fund I-A SCP (Equity) $ 2,500,000.00 (2022)
- AfricInvest Financial Inclusion Vehicle (Equity) € 3,200,000.00 (2022)
- Cathay Africinvest Innovation Fund (Equity) € 4,000,000.00 (2021)
- Incofin India Progress Fund (Equity) € 3,500,000.00 (2021)
- Ascent Rift Valley Fund II (Equity) $ 4,000,000.00 (2020)
- African Rivers Fund III (Equity) $ 1,700,000.00 (2020)
- Excelsior Capital Vietnam Partners (Equity) $ 2,200,000.00 (2020)
- South Asia Growth Fund II (Equity) $ 2,200,000.00 (2020)
Read impact and news about this project
News
SDG Frontier Fund Final Closing
29-04-2022
First-of-its-kind Belgian impact fund mobilises additional private resources to support African and Asian SMEs in their growth.
News
Greener money
31-08-2021
Money is getting greener. The superlative in sustainable investing today is "impact investing". A growing global market that is already worth more than $700 billion.
Article originally appeared in MT Magazine in Dutch.
News
Repousser les frontières des investissements durables
15-12-2020
An interview with Luuk Zonneveld, An-Heleen De Greef & Eric Van den Bosch on the SDG Frontier Fund, published in L'Eventail on the 10th of December 2020, written by Cédric Boitte.
This article was published in French.
News
You'll never make the world sustainable with only public money
02-07-2020
Financial return is worth twice as much if it also helps the world move forward. The Belgian government and business world collect 50 million euros for sustainable investments in the African and Asian private sector. "Investing is better than giving," says driving force Alexander De Croo, Minister of Development Cooperation. "You will only see a return on your investment if it has really made a difference."
News
SDG Frontier Fund first closing
02-07-2020
First-of-its-kind Belgian impact fund brings together 9 private investors to support sustainable economic growth in African and Asian frontier markets.
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Financial Institutions
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12,815,000.00
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08/11/2024
Debt
