A USD 150 – 200 million Fund focused on the MENA region.
Beirut, June 11, 2014: The Capital Trust Group and EuroMena Fund management team hosted the closing event for their fourth private equity fund focused on the MENA region, EuroMena III. The Fund is currently closing for a consideration of USD100 million with the objective to reach before the end of the year a total size of USD150 million to USD200 million.
Several institutions have committed to the Fund including the EIB for the third consecutive time for a global amount of USD 56 million, financed by the European Union and the Kingdom of Spain – AECID, as well as the DEG – Deutsche Investitions- und Entwicklungsgesellschaft, IFC (International Finance Corporation), a member of the World Bank Group, EDF (Electricité de France) and EuroMena I and II partners who have shown continued support and confidence.
The event, which consisted of a press conference followed by a cocktail reception, took place at the Sursock Palace Gardens in the presence of delegates from various countries, key figures in the finance industry as well as members of the press.
Heading the conference were keynote speakers: Romen Mathieu, Managing Partner of the EuroMena Funds, Philippe de Fontaine Vive, Vice-President, European Investment Bank, Mouayed Makhlouf, Regional Director for the IFC and Dr. Detlef Geldmacher, Vice President, DEG.
Similar to the success of its predecessors, EuroMena III will invest in private companies, within the Middle East and Africa that operate in fast growing industries and have the potential to become Regional Leading Groups. The fund will not invest in real-estate or start-ups; however keeping a limited allocation for Greenfield projects with experienced industrial partners and turnaround situations.
Commenting on the occasion, Romen Mathieu stated: “The EuroMena Funds are a bridge between Europe, the Middle East and Africa with the objective of creating value to our shareholders while catalysing growth and implementing international governance, social and environmental standards across the region. With our businessmen mind-set and hands on approach in our portfolio companies we target high returns (IRR) for the Fund. And through our close relation with our various partners and managers of our portfolio companies, shareholders,advisors and service providers, we are contributing to the creation of a sustainable, long term market for Private Equity in this region, which, over the coming years, shall attract a significant amount of capital to be invested”
The EIB Vice President Philippe de Fontaine Vive, commented: “The EIB is very pleased to renew its support to the Euromena Funds. Investing in companies that by dint of their growth potential are set to become regional leaders, is a priority of the Bank. These actors play a crucial role in developing private sector growth and restoring employment in the region which underpin the future aspirations of the region’s youth.”
“SMEs find it difficult to get the finance to put their business ideas into practice, yet they are the ones who can contribute most to the economy,” said Mouayed Makhlouf, IFC Director for the Middle East and North Africa. “By investing in funds like these we can make sure our expertise and backing goes where it is most needed.”
Dr. Detlef Geldmacher added: “EUROMENA III is an important initiative to provide equity and quasi-equity to small- and midcap companies in the Levant and Mena. The Fund will contribute to improve the availability of long term risk capital and enables qualified companies to finance their development and expansion opportunities. Its successful first close will also help to build investor confidence in the region.”
The Fund Management Team has demonstrated its ability to invest in high-growth companies at attractive valuations, and exiting successfully with high returns. EuroMena I has been fully invested in nine portfolio companies and successfully exited four realizing more than double the money on its investments. As for EuroMena II, raised in 2009, a portfolio of six companies havebeen invested in.
Aligning interest with its investors, the Fund Management Team will commit to a minimum of USD1.3 million in EuroMena III while the Capital Trust Group will commit a minimum of USD2million.