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Fiche récapitulative
- Services - Activités financières et d'assurance
This operation consists of an investment into a fund that will promote private sector development in North Africa, by enhancing access to risk capital and offering managerial value-added support to local small and medium-sized enterprises (SMEs). The fund will pursue a strategy that was refined over the lifetime of two predecessor funds in which the EIB is an investor. The fund manager aims to generate value by employing a hands-on management approach, fostering the growth and profitability of investee companies, while improving their environmental, social, and governance (ESG) standards and implementing appropriate digitalisation measures.
The aim is to support the growth and institutionalisation of private companies in the Southern Neighbourhood, as well as enhance trade between the EU and SMEs in the region.
The transaction relates to a private equity fund targeting growth capital investments predominantly in small and mid-sized private companies active in North Africa. Through this operation, the EIB will be able to continue to support the growth and institutionalisation of an independent fund manager investing in North Africa. Furthermore, the EIB will provide much needed equity risk capital and managerial value add to local enterprises that operate across various economic sectors. This is expected to enhance the sustainability of local companies that support local employment for a growing urban population.
Access to finance - in particular equity finance - and managerial advice are among the most prevalent barriers for the growth of small and mid-sized companies. The provision of growth capital and managerial support through private equity funds has proven an effective strategy to overcome this market failure.
The EIB's commitment as part of the Fund's first closing is anticipated to support the fund raising and catalyse other investors in a difficult fund-raising environment. The EIB is expecting to continue to provide guidance to the fund manager on best market practice for international private equity firms and thus contribute further to its institutionalisation.
The proposed operation is consistent with EU policy as articulated in the new Agenda for the Mediterranean. Specifically, Flagship 5 "Connected economies", foresees the financing of Micro, Small and Medium Enterprise (MSME).
The fund will operate in line with the EIB's Environmental and Social standards.
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