Release date: 24 May 2022
Promoter – Financial Intermediary
SPECIAL PURPOSE ENTITY(IES)/FUNDLocation
Description
Equity participation of up to USD 20 million in East Lane Partners North Africa and Levant Fund I, a generalist private equity fund targeting growth capital investments in small and medium-sized private companies operating in North Africa and Levant.
Additionality and Impact
Through this operation, the EIB will be able to support the creation of an independent, local fund manager investing in Egypt, Morocco, Tunisia and Jordan. Furthermore, the EIB will provide much needed equity risk capital to local enterprises that operate across various economic sectors. 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. By providing growth capital and managerial advice to local companies, the operation will contribute considerably to boosting enterprise capabilities and competitiveness through access to finance and improved skills.
Additionally, the EIB is expecting to provide guidance to the fund manager on best market practice for international private equity firms and thus contribute to its institutionalisation. In due course, the EIB will initiate the legal negotiations and work closely with other potential investors.
Thus, the EIB's involvement is expected to be catalytic in a difficult fund raising environment that has been exacerbated by the impact of the Covid-19 pandemic.
Objectives
The fund will aim to invest in a diversified portfolio of small and mid-sized companies seeking to grow their activities. The fund manager will proactively support the corporate and operational development of underlying investee companies.
Sector(s)
- Services - Financial and insurance activities
Proposed EIB finance (Approximate amount)
USD 20 million (EUR 19 million)
Total cost (Approximate amount)
USD 150 million (EUR 143 million)
Environmental aspects
The fund will operate in line with the EIB's environmental and social standards.
Procurement
N/A
Status
Signed - 5/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).