EBRD commits US$ 40 million to SPE PEF III

The European Bank for Reconstruction and Development (EBRD) is committing up to US$ 40 million to SPE PEF III (PEF III), the new fund raised by SPE Capital, to support mid-cap companies in Egypt, Morocco and Tunisia.

PEF III will seek to generate long-term capital gains from equity and equity-related investments in companies in these three North African countries, with the flexibility to also invest in selected countries in sub-Saharan Africa.

Through this investment, the EBRD aims to contribute to the resilience of financial markets and increase the competitiveness of local enterprises by sustaining private equity as an alternative source of funding in North Africa. The investment will broaden the sources of capital to finance the growth of enterprises. The fund will aim to invest in eight to twelve companies, in sectors resilient to market shocks and with high growth potential, such as manufacturing, production and processing of goods, business services, healthcare services, pharmaceuticals and private educational services.

SPE Capital is a prominent fund manager operating in Africa, able to deploy around US$ 500 million, including co-investments in more than 15 companies across the continent. This new EBRD investment follows the first made with SPE Capital, back in 2019-20, when the EBRD invested in SPE AIF I (AIF I) fund, the predecessor to PEF III. To date, through AIF I, SPE Capital has invested in nine companies across a broad range of sectors including healthcare, education, fast-moving consumer goods and food processing.

Anne Fossemalle, EBRD Director for Private Equity Funds investment, said: “We are excited to support SPE Capital, a key strategic partner to the EBRD in the southern and eastern Mediterranean region, in their next phase of development, through our investment in PEF III. SPE Capital will leverage their established presence in regional offices in Tunis, Casablanca, Cairo and Abidjan to support African firms in reaching their full operational potential, deliver successful financial returns to investors and improve quality of life on the continent.”

Nabil Triki, Managing Partner and CEO of SPE Capital, said: “We are grateful for the unwavering support of the EBRD, which has been instrumental to the private equity funds we manage and the development of our firm more generally. Such commitment not only empowers us to generate substantial returns for our investors but also drives positive and lasting impact in the markets we invest in. Together, we are fostering sustainable growth and development that benefits communities and economies alike. This partnership underscores our shared vision of driving the development of resilient, high-growth companies in North Africa and beyond.”

SPE Capital takes a hands-on approach to implementing sustainable growth strategies and environmental, social and governance processes across all of its investments, as well as promoting gender equality. This enables its portfolio companies to deliver higher-than-average revenue growth rates and earnings before interest, tax, depreciation and amortisation (EBITDA) and to promote responsible development.

Since 2012, the EBRD has invested more than €19 billion in 356 projects in Egypt, Morocco and Tunisia, across various sectors of these economies.