Tanmiya Capital Closes $130 Million Investment Fund to Support Egyptian Companies

• Tanmiya Capital Ventures, an Egyptian company specializing in private equity investments, has announced the final closing of its second investment fund at $130 million, surpassing its target of $120 million, following a $37.5 million investment commitment from the European Investment Bank (EIB) through its development arm, EIB Global.
• The fund is supported by several local and international investment and financing institutions, 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 Enterprises Development Agency in Egypt.
• Founded in 2016, Tanmiya Capital Ventures focuses on private equity investments and growth stakes in established, medium-sized Egyptian companies. Its second fund aims to invest in sectors such as healthcare, training, fintech, consumer goods, logistics, and transportation, while providing management and operational support to help companies expand.
• The fund is expected to include a portfolio of six to eight companies, aiming to support their business growth, improve governance, and create new job opportunities. It is also expected that at least 30% of the portfolio companies will meet one or more of the European Investment Bank's gender equality financing criteria.

Press Release:

The European Investment Bank, through its development arm "EIB Global," has invested $37.5 million in the "Tanmiya Capital Ventures 2" fund to enhance the access of existing small and medium-sized enterprises in Egypt to the necessary growth capital. This investment was announced today during a ceremony held in Cairo, attended by Ms. Gelsomina Flioti, Vice President of the European Investment Bank, and Messrs. Ahmed El-Gendy, Youssef Ahmed Ayoub, and Mohamed Mohsen Mahgoub, partners and managing directors of Tanmiya Capital Ventures.

The commitment from the European Investment Bank contributed to the final closing of the "Tanmiya Capital Ventures" fund with a capital of $130 million, exceeding the targeted fundraising amount of $120 million. The fund is supported by a diverse group of international and local investors, including the Egyptian American Enterprise Fund, the European Bank for Reconstruction and Development, the International Finance Corporation, and the Micro, Small and Medium Enterprises Development Agency in Egypt.

The fund is managed by Tanmiya Capital Ventures (TCV), an independent Egyptian investment company, and will direct its investments towards established, high-growth Egyptian companies included in its diverse investment portfolio. The fund will focus on companies seeking strategic capital for expansion, professionalizing their operations, and enhancing their competitiveness, with expected investments in sectors such as healthcare, education, fintech, consumer goods, logistics, and transportation.

This investment aims to bridge the gap in the availability of long-term equity financing for small and medium-sized enterprises in Egypt. By combining capital with strategic and managerial support, the fund is expected to help the companies in its investment portfolio grow, improve governance, and create job opportunities. It is anticipated that at least 30% of the companies included in the portfolio will meet at least one of the European Investment Bank's gender equality financing criteria.

For her part, Ms. Gelsomina Flioti, Vice President of the European Investment Bank, stated: "The Egyptian private sector has tremendous potential to drive sustainable growth, create good jobs, and deepen its economic relationship with Europe. The European Investment Bank's investment in the "Tanmiya Capital Ventures 2" fund will enable ambitious local companies to access the necessary growth capital and expertise to expand their operations. It also demonstrates the European Union's commitment, through the Global Gateway initiative and the new EU agenda for the Mediterranean region, to support a more competitive, inclusive, and resilient Egyptian economy.

As Mr. Ahmed El-Gendy, partner and managing director of Tanmia Capital Ventures, pointed out, "The success of closing the Tanmia Capital Ventures 2 Fund, exceeding its target, reflects the confidence of investors in the strategy adopted by the company and the significant potential of the Egyptian private sector. The European Investment Bank's commitment is not limited to providing capital but also includes offering valuable international expertise and a shared vision focused on sustainable growth, good governance, and achieving long-term value. We will work together to accompany ambitious Egyptian companies at all stages of their development, enhancing their competitiveness and strengthening their ties with regional and European markets while expanding their reach."

For his part, Mr. Ari Naeem, regional director of the International Finance Corporation for North Africa and the Horn of Africa, stated, "Our investments in the Tanmia Capital Ventures 2 Fund reflect the International Finance Corporation's commitment to supporting the private sector in Egypt by expanding avenues for companies to access long-term growth capital necessary for their expansion and job creation. By partnering with experienced local fund managers, we can help promising Egyptian companies, including family-owned businesses, solidify their operations, enhance their competitiveness, and expand. This is an integral part of our broader efforts to mobilize private investments and support sustainable and inclusive growth in Egypt."

Dr. Mostafa Ismail Hassan, CEO of the Micro, Small and Medium Enterprises Development Authority, mentioned that "Our investments in the Tanmia Capital Ventures 2 Fund enhance the mission of the Authority's 'Fund of Funds' program, through which we partner with experienced private equity and venture capital fund managers, supporting emerging ones to attract private and international capital to promising Egyptian companies. We believe that the Tanmia Capital Ventures 2 Fund can provide the necessary growth capital and expertise for companies with real potential for expansion and job creation, aligning with the Egyptian strategy to enhance the private sector and the country's vision for 2030."

Ms. Yasmin Ghabrial, head of the investment sector at the Egyptian American Enterprise Fund, praised the partnership with the fund, stating, "We are proud to continue our long-term partnership with Tanmia Capital Ventures, whose team has consistently demonstrated its ability to invest in and contribute to the development of growing companies in Egypt. The closing of the fund, along with the increasing number of subscribers, serves as a strong indicator of investor confidence and reflects our firm belief in the robustness of the foundations on which the Egyptian economy has long been built, as well as the central role played by the private sector in stimulating growth and creating job opportunities."

It is worth noting that this initiative falls within the framework of the Team Europe approach and supports the European Union's Global Gateway investment package in Africa. This initiative is also expected to enhance trade links between Egypt and Europe, as companies included in the portfolio can obtain equipment, technologies, and services from European suppliers or establish partnerships with European companies.

Upon reaching the targeted level, the fund is expected to have a portfolio of six to eight companies and support the creation of thousands of jobs across Egypt. The European Investment Bank is set to contribute its expertise in environmental, social, and governance standards, as well as provide best international practices in private equity through its participation in the fund's advisory committee.

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