EuroMena has held the second and final closing of its third fund EuroMena III for a total consideration of USD150 million.
The fund also held the first advisory committee meeting of EuroMena III in London at the headquarters of one of its major limited partners, the CDC Group.
EuroMena attracted first-time international investors to its third fund such as the International Finance Corporation (IFC), the German Investment and Development Corporation (DEG), and the UK’s Development Finance Institution (CDC Group) in addition to third and second time investors such as the European Investment Bank (EIB) and the French Public Wealth Funds (Proparco) respectively.
In its third fund, EuroMena extended its geographical focus to include Sub-Saharan Africa, a rapidly growing region driven by a rising middle class.
Murray Grant, managing director of intermediated equity at CDC, says: “CDC is delighted to help enable EuroMena III achieve its final close target with a commitment of USD20 million in the fund. As one of the best teams in the mid-cap space in North Africa we're encouraged to see EuroMena expand into the rest of the continent. We look forward to working with the fund as it turns national successes into regional champions, creating jobs and economic opportunity across Africa.”
Romen Mathieu, managing partner of EuroMena, says: “Despite the challenging macro-environment in the region, EuroMena has successfully raised this strategic round of investments, which is a direct result of its successful track record.
“By following EuroMena’s proven strategy of creating regional leading groups, the fund is not only generating value for its shareholders, but also creating a visible positive impact in the Middle East and Africa through the creation of job opportunities and the contribution to the development of those countries’ economies. The participation of several international investors in the fund is a clear demonstration of the opportunity that EuroMena’s target regions (the Middle East and Africa) provide to foreign investors in terms of portfolio diversification.
“As of December 2016, EuroMena III had invested in three prominent companies in the FMCG, retail, and banking sectors operating in Nigeria, Tunisia, Morocco, Algeria, and Lebanon. A fourth investment should be closed in the coming weeks and we expect the fund to be fully invested by end of 2017.”
The EuroMena fund management team has been working in the region since 2005 and has built deep expertise in various industries. To date, it has successfully exited six investments, generating 2x money on the invested capital, and is on its way to realise three other exists by Q1 2017.
“The EIB is very pleased to have supported for the third consecutive time the EuroMena family with a commitment of USD27 million from EC resources and The Kingdom of Spain-AECID in EuroMena III. Despite the difficulties in the region, EuroMena is playing a crucial role in developing the private sector growth and restoring employment in the Southern Mediterranean region which underpins the future aspirations of the region’s youth,” says Christian López-Baillo, EIB private equity operations.
The fund follows a diversified investment strategy in countries and sectors selection to optimise the risk/reward profile of its investments. Sectors of interest include retail & consumer products, food & beverage, education & healthcare, energy, financial services, and information technology.
