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    Reference: 20170078
    Release date: 27 June 2017

    Promoter – Financial Intermediary

    SPECIAL PURPOSE ENTITY(IES)/FUND

    Location

    Description

    Cepheus is a local Ethiopian fund manager launching its first fund focused on Ethiopia where the private equity industry is nascent. The fund is incorporated in Mauritius and will focus on providing growth capital for Ethiopian small and medium-sized enterprises (SMEs) with a focus on strong job creation and sustainable financial returns. The significant job creation will impact the root causes of the migration crisis in this frontier country. The operation is EIB's first fund investment in Ethiopia, supporting a first-time manager with a focus on generating superior developmental returns.

    Objectives

    The proposed operation concerns a participation in Cepheus Growth Capital Fund, a closed-end growth equity fund with a target size of USD 100m. The fund will be set up to make privately negotiated equity and equity-related investments in SMEs in Ethiopia. With a generalist approach in terms of sectors, the fund will support local companies in need of growth financing with strong job creation focus. Its main objective consists in acquiring significant minority stakes in businesses with a strong growth potential. The manager will seek to create value through a hands-on management approach, driving the growth and profitability of investee companies and enhancing enterprise skills, governance as well as environmental and social standards.

    Sector(s)

    • Services - Financial and insurance activities

    Proposed EIB finance (Approximate amount)

    USD 10 million (EUR 8 million)

    Total cost (Approximate amount)

    USD 100 million (EUR 84 million)

    Environmental aspects

    The fund's operational guidelines provide for environmental and social due diligence of investee companies according to guidelines acceptable to the Bank.

    Procurement

    Not applicable

    Status

    Signed - 23/11/2017

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Ethiopia Services