Cairo 02 Dec 2024:
The European Bank for Reconstruction and Development (EBRD) is supporting mid-cap companies in Egypt, Morocco and Tunisia through a cornerstone commitment of up to US$ 80 million to North Africa Fund III (NAF III), the first fund to be raised by RMBV as an independent fund manager.
NAF III will seek to generate long-term capital gains from equity and equity-related investments in mid-cap companies in the three countries.
Following a first closing, NAF III will seek to invest up to US$ 300 million in North African businesses help them reach their full operational potential and generate financial returns for investors. While the Fund will be sector agnostic, RMBV will primarily target companies operating in four core sectors where the team has a track record of successfully deploying capital, namely, healthcare, education, financial services and consumer staples. Within these sectors, the RMBV team will have a bias towards investing in companies offering goods and/or services that will capitalise on the promising consumer dynamics of North Africa.
In addition to financial support, RMBV will receive a technical co-operation package to assist with the creation and implementation of a gender action plan.
Anne Fossemalle, EBRD Director for Private Equity Funds, said: “We are proud to continue to support the RMBV team in raising its first fund as an independent player in the North African private equity market. In anchoring NAF III, the Bank reaffirms its dedication not only to supporting quality teams but also to sustaining private equity as a funding source in the North African economies where it operates. As the first investor, the EBRD’s support for NAF III will have a catalytic effect on mobilising both public and private capital to invest in the region and lead the fund towards first closing.”
Ahmed Badreldin, Managing Partner of RMBV, said: “We are honoured to have the continued trust and support of the EBRD as we embark on this exciting chapter for RMBV with North Africa Fund III. This partnership reflects our shared vision of fostering sustainable economic growth across the region by empowering mid-cap companies to achieve their full potential and contributing to their transformation into regional leaders. By aligning with the EBRD’s core values – building competitive, inclusive, resilient and well-governed businesses – we aim to deliver superior returns for our investors while helping to build tomorrow’s economy and driving meaningful impact in the region.”
As part of its investment approach, RMBV seeks to invest in companies that show potential for sustained growth, consolidation and/or expansion, are operated by commercially minded founders and/or managed by professional teams, and have proven resistant to periods of economic uncertainty.