The Ezdehar Egypt Mid-Cap Fund has opened the door to international institutions looking to subscribe to its second investment fund, with a capital of $100m.
Emad Barsoum, founding partner at Ezdehar, told Daily News Egypt that he expects the subscription will close at $100m before the end of the year, with a second subscription to open in 2021 to attract more $100m.
He noted that a number of international financial institutions are willing to contribute to the fund’s capital. These are led by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the UK’s CDC Fund, and the Dutch Investment Fund, as well as Egyptian businessperson Naguib Sawiris. The fund will also address the International Finance Corporation (IFC) to contribute to the fund’s capital.
Barsoum explained that the new fund will direct investments to the local market through medium-sized companies, with investments ranging from $10m to $30m per transaction. The fund targets industrial and service companies, in addition to the education, health, and non-banking financial services sectors.
Barsoum noted that the first fund established by the company in 2016 will close in October, as most of the fund’s capital has been spent. Only a limited portion now remains that will be invested in one company over the next few months.
Ezdehar was established in 2016 with capital worth $90m. It was set up by a group of investment experts, including Barsoum, who had been the former managing director of Wind Telecom, a subsidiary of Orascom Telecom Holding. Amir Mashrekyi, who has experience in managing assets with Carlyle Global Asset Management, was also involved in Ezdehar’s set up.
Ezdehar’s first fund invested in a group of companies, including Dsquares Marketing, Family Group, Rich Group, and the Nile Company for Aluminium and Minerals.