The Egyptian private equity firm "Tanmiya Capital Ventures" (TCV) announced the final closing of its second investment fund at $130 million, exceeding its initial target of $120 million, supported by a $37.5 million investment commitment from the European Investment Bank through its development arm (EIB Global).
The fund is backed by a diverse group of local and international investors, including the Egyptian-American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the Micro, Small and Medium Enterprise Development Agency (MSMEDA) in Egypt.
Target sectors and expansion plan
Tanmiya Capital Ventures was established in 2016 and focuses on private equity growth investments in existing Egyptian mid-sized companies. The second fund will target companies operating in the healthcare, training, fintech, consumer goods, and logistics and transportation sectors, providing them with capital and operational support to facilitate their expansion.
The fund is expected to build an investment portfolio comprising six to eight companies, with the aim of supporting business growth, improving corporate governance standards, and creating job opportunities, with a commitment that at least 30% of the portfolio companies will meet the European Investment Bank's 2X Challenge criteria for gender equality financing.
What does this funding round represent?
This successful closing, which exceeded original targets, reflects investor confidence in the fund's strategy and the strength of the fundamentals of startups and mid-sized companies in the Egyptian market. It also contributes to addressing the shortage of long-term equity financing for small and medium-sized enterprises, enabling them to enhance their competitiveness and expand their regional and international operations.
The fund adopts the "Team Europe" approach to support the European Union's Global Gateway investment package, and it is expected to contribute to building partnerships and strengthening trade ties between Egyptian companies and European suppliers and institutions.