Thu, 01 Oct 2020 - 12:35 GMT
The European Bank for Reconstruction and Development - Photo courtesy of EBRD official website
CAIRO - 1 OCtober 2020: The European Bank for Reconstruction and Development (EBRD) announced Thursday investing up to US$ 50 million in Lorax Capital Partners (LCP) Fund II.
EBRD clarified that this fund is to boost the resilience of the financial sector in Egypt and support equity financing to small and medium-sized businesses.
According to the EBRD, equity fundraising is facing extremely challenging times in the southern and eastern Mediterranean (SEMED) region due to the COVID-19 pandemic and small companies are facing a decrease in their activity and liquidity shortages. The EBRD’s commitment to LCP Fund II helps to bring a SEMED fund to fruition during the crisis.
“We are thrilled to support a local and independent team such as Lorax. The EBRD’s investment in LCP Fund II helps to contribute to the development of private equity in Egypt and will help to provide long-term capital growth to small and medium-sized companies in the region,” EBRD Director and Head of the Equity Funds team Anne Fossemalle, commented.
The bank noted that this investment marks the EBRD’s second investment into an Egypt-focused private equity fund, with the first being Ezdehar Egypt Mid-Cap Fund in 2016.
Lorax Capital Partners is an experienced and independent team based in Cairo. With the support of the EBRD, the fund held a first closing of $142 million in September 2020, launching its first traditional private equity fund. The Fund is targeting total commitments of US$ 250 million.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the EBRD has invested over €6.8 billion in 123 projects in the country.