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EBRD commits €30 million to Mediterrania Capital IV

By Nibal Zgheib

  • EBRD commits up to €30 million to the new fund raised by Mediterrania Capital Partners
  • The fund supports mid-cap companies in Egypt, Morocco and Tunisia
  • Up to €350 million of investment intended to support African businesses

The European Bank for Reconstruction and Development (EBRD) is committing up to €30 million to Mediterrania Capital IV (MC IV), the new fund raised by Mediterrania Capital Partners. MC IV seeks to generate long-term capital gains from equity and equity-related investments in mid-cap companies in Egypt, Morocco and Tunisia.

Through this investment, the Bank aims to contribute to the resilience of financial markets by sustaining private equity as an alternative funding source in North Africa.

It follows two previous EBRD investments in Mediterrania Capital’s funds: MC II and MC III. Over the past 10 years these two funds have invested in 15 small and medium-sized enterprises (SMEs) and mid-cap companies in Africa, delivering aggregated annual revenues of €1.5 billion and employing more than 22,000 people.

Anne Fossemalle, EBRD Director for Private Equity Funds, said: “Through our investments we aim to help local businesses flourish, promote innovation, catalyse enterprise growth and, critically, seek financial returns for the Bank. We are proud that our fund investments ultimately improve people’s quality of life in the EBRD regions. With their established presence in North Africa, transactional and operational experience, robust environmental, social and governance (ESG) processes, and dedication to promoting gender equality, Mediterrania Capital continues to be a key partner for the Bank.”

MC IV aims to invest up to €350 million in African businesses to support them in reaching their full operational potential and generate financial returns for investors. Mediterrania Capital’s funds target mid-cap companies operating in sectors that are crucial to furthering development, including education, financial services, healthcare, pharmaceuticals, construction and consumer staples.

Albert Alsina, Founder and CEO of Mediterrania Capital Partners, said: “We are pleased to count on the EBRD’s ongoing support. The EBRD’s values of building market economies through businesses that are competitive, green, inclusive, resilient, and well-governed are fully aligned with our goals as a private equity firm that seeks to deliver high returns to our investors and partners while helping businesses grow and set the right foundations for the future.”

Mediterrania Capital takes a proactive, hands-on approach to implementing sustainable growth strategies and ESG processes across all its investments. This approach enables portfolio companies to deliver higher-than-average EBITDA and revenue growth rates and promote responsible development.

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