Mediterrania Capital IV Mid-Cap

Customer

MC IV will be the fourth Private Equity Fund managed by Mediterrania Capital Partners Ltd. The Fund is the fourth fund managed by Mediterrania Capital Partners. The Manager is headquartered in Malta and operates offices in Egypt, Morocco, Algeria and Côte d’Ivoire and holds ca EUR 150m worth of Assets under management plus co-investments.  

Funding Objective

MC IV will focus on investments in North Africa (mainly: Morocco and Egypt) and Francophone West Africa. The companies MCP focuses on are fast growing entities with strong management teams operating in growth markets The Fund will be sector generalist with investments in healthcare, FMCG, financial services and manufacturing.

Reasons for financing

Africa is outlined as a key focus region of DEG and one of the most interesting equity markets. Next to that, DEG’s fund portfolio in Africa has shown substantial co-investments contribute to DEG’s impact targets and financial results.

DEG will play a crucial role with regard to the further institutionalization of MC IV. Beyond financing, DEG will aim to leverage current progress on the 2X Challenge and Gender Finance Collaborative by supporting the Manager. In addition, DEG will provide a detailed Business Support Service envelope on climate and a Business Support Service measure in order to build capacity on climate investments on the Manager level.

Given MCP’s track record, the current development quality can be estimated as “very good” is forecasted to be 93 in 5 years. This is substantially above DEG’s target of 75. The investment fits perfectly with DEG’s strategy to strengthen private equity as a catalyst for growth in Africa. The investment will contribute to the improvement of local income and creation of decent jobs. MC IV is forecasted to create ~1,500 jobs with average job growth of 20% five years after investment. In addition, the portfolio is expected to contribute ca. EUR 800m of local income generated.

Thereby the investment will contribute to the following Sustainable Development Goals (SDGs): SDG 3 – Good Health and Well-being, SDG 4 – Quality Education, SDG 5 – Gender Equality, SDG 8 – Decent Work and Economic Growth as well as SDG 13 – Climate Action. 

 

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