LCP Fund II Coöperatief U.A.
Customer
Lorax Capital Partners Fund II Coöperatief U.A. (LCP II) is a Fund managed by LCP Fund Manager B.V. and advised by LCP for Financial Advisory S.A.E. LCP II is an Egypt focussed private equity fund targeting fast growing midsize companies that require growth capital.
Funding Objective
The investment strategy focusses on four themes that offer substantial potential for investment: consumer-demand driven industries (like retail, healthcare, pharma, education), financial inclusion through Non-Bank Fi-nancial Institutions (NBFI) and App based financial products that address the needs of the poorer, largely un-banked population and import substitution as well as expanding the geographical footprint. The overarching theme of the strategy is innovation through investments in businesses that are IT or technology driven or where innovation is a major driver for business development.
Reasons for financing
Development FInance Institution funding is catalytic to crowd in private investors which still largely ignore Africa because risks are or are perceived to be high. DEG, along with other development finance institutions, will play an important role with regard to the further institutionalization of LCP II, in particular with regard to ESG.
Overall, the development impact is expected to be very significant. The strategic focus on NBFI and App based financial products facilitate financial inclusion and address the needs of the poorer, unbanked population which has deep structural impacts including very substantial job creation in the SME sector. Other elements of the strategy (like investment in healthcare and education) address major developmental bottlenecks in Egypt.