MICROCAPITAL BRIEF: International Finance Corporation (IFC) Commits $15m to Private Equity Fund EuroMena III to Support Small, Medium-sized Enterprises (SMEs) in Middle East, North Africa

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, reportedly has committed USD 15 million to EuroMena III, a 7-year closed-end private equity fund that aims to invest in small and medium-sized enterprises (SMEs) in Egypt, Lebanon and Jordan. The fund will also consider investment opportunities in other countries in the Middle East and North Africa (MENA) region. The fund will focus on companies that create new employment opportunities and that empower women and young people. IFC will provide technical expertise on transparency and technical governance to the recipients of EuroMena III investments.

According to a statement attributed to Romen Mathieu, a Managing Partner of EuroMena III, “We see great investment opportunities across the MENA region where our fund can help firms expand and improve their operations”[1]. Mouazed Makhlouf, IFC Director for the Middle East and North Africa, reportedly said that “by investing in funds like these we can make sure our expertise and backing goes where it is most needed”[1].

IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. The EuroMena funds invest in private companies in MENA. The EuroMena I fund that was closed in 2006 invested USD 65 million in nine companies and has exited four of its investments as of 2014. The EuroMena II fund was announced in 2008 with a 7-year period, and as of 2014, the fund has USD 90 million under management with six active investments. As of 2014, EuroMena III targets USD 150 million in total commitments with individual investment sizes ranging from USD 10 million to USD 20 million. It is managed by the Capital Trust Group, which specializes in investing in MENA and is based in London, United Kingdom. Capital Trust Group actively manages funds with total capital commitments of USD 254 million as of 2014.

By Alíz Crowley, Research Associate

About EuroMena III

EuroMena III is a private equity fund that targets capital investments in small and medium-sized companies in the Middle East and North Africa (MENA) region. EuroMena III is a 7-year closed-end fund that targets USD 150 million in total commitments with individual investment sizes ranging from USD 10 million to USD 20 million. The financial intermediary of the fund is the Capital Trust Group, a London-based private equity, corporate finance advisory and real estate company that operates in the MENA region. Capital Trust Group actively manages funds with total capital commitments of USD 254 million as of 2014.

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources

[1] Zawya, June 2014, IFC Invests in Private Equity Fund to Boost Small Businesses in MENA

[2] International Finance Corporation, EuroMena III LP

[3] Health, Finance & Investment Forum, The EuroMena Funds

[4] Zawya, November 2013, EuroMena Fund II

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