Cairo, January 31, 2022 – To help medium-sized businesses in Egypt access the financing and tools they need to grow, create jobs, and overcome COVID-19 related challenges, IFC today announced an investment in a private equity fund managed by Ezdehar Management (Ezdehar), a leading private equity fund manager focused on Egypt.
IFC's $20 million investment in the Ezdehar Mid-Cap Fund II (EMF II) brings the fund's total commitments to $168 million at first close. EMF II will invest in businesses across important growth sectors in Egypt, including consumer and retail, business services, education, healthcare, and manufacturing.
Besides capital, the fund will provide businesses with operational and management support to help them implement best-in-class environmental, social, and governance (ESG) standards and develop into market-leading enterprises.
"With this fund, Ezdehar was able to significantly expand its investor base to include a unique set of reputable regional and global institutions," said Emad Barsoum, Ezdehar's Founder and Managing Director. "This fund is setting Ezdehar as the preferred partner for deploying development capital to build homegrown private sector champions in Egypt."
"With the COVID pandemic continuing to present companies with unprecedented challenges, IFC remains committed to providing funding and support to businesses that need it most," said Shruti Chandrasekhar, IFC's Africa Regional Lead for Private Equity & Venture Capital Funds. "Our investment in Ezdehar will help sustain and create jobs and promote entrepreneurship in Egypt."
Other international investors supporting the fund are the Belgian Investment Company for Developing Countries; CDC Group PLC; the Egyptian-American Enterprise Fund; the European Bank for Reconstruction and Development; the European Investment Bank; and FMO, the Entrepreneurial Development Bank.
Private equity and venture capital play a critical role providing funding in markets where it is scarce, helping build dynamic, job-creating companies that drive growth and development.
This investment reflects IFC's strategy to provide growth capital in Egypt and other emerging markets across Africa. Over the past two fiscal years, IFC has committed and mobilized more than $716 million in Egypt, supporting private businesses and economic activity through the COVID-19 pandemic.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About Ezdehar
Ezdehar is a private equity fund manager based in Egypt with over US$ 250 million under management. We partner with companies who are seeking investment that is coupled with true partnership to accelerate growth, unlock value, and create lasting legacies. For our investors, we aim to provide superior returns using a rigorous investment process, strong portfolio management, and world-class reporting and communications. Since its establishment in 2015, Ezdehar has created a strong track record of success and intends to build on this over the years to come. Ezdehar's team of investment professionals provides its portfolio companies with strategic guidance, support to achieve operational excellence, and genuine partnership. For more information, visit www.ezdehar.com.
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