Following the success of its previous private equity funds, EuroMena announces the second and final closing of its third fund EuroMena III for a total consideration of $150 million. The Fund is also pleased to announce that it held the first advisory committee meeting of EuroMena III in London in the headquarters of one of its major Limited Partners, the CDC Group.
The successful closing of a third fund for a total consideration of $150 million in the region is a clear demonstration of the Fund Management Team’s ability to create value for its shareholders. EuroMena attracted first-time international investors to its third fund such as the International Finance Corporation (IFC), the German Investment and Development Corporation (DEG), and the UK’s Development Finance Institution (CDC Group) in addition to third and second time investors such as the European Investment Bank (EIB) and the French Public Wealth Funds (Proparco) respectively. In its third fund, EuroMena extended its geographical focus to include Sub-Saharan Africa, a rapidly growing region driven by a rising middle class.
Mr. Murray Grant- Managing Director of Intermediated Equity at CDC commented:
“CDC is delighted to help enable EuroMena III achieve its final close target with a commitment of $20 million in the Fund. As one of the best teams in the mid-cap space in North Africa we’re encouraged to see EuroMena expand into the rest of the continent. We look forward to working with the fund as it turns national successes into regional champions, creating jobs and economic opportunity across Africa.”
Commenting on the second closing of the Fund, Mr. Romen Mathieu, Managing Partner of EuroMena said:
“Despite the challenging macro-environment in the region, EuroMena has successfully raised this strategic round of investments, which is a direct result of its successful track record.
By following EuroMena’s proven strategy of creating Regional Leading Groups, the Fund is not only generating value for its shareholders, but also creating a visible positive impact in the Middle East and Africa through the creation of job opportunities and the contribution to the development of those countries’ economies. The participation of several international investors in the Fund is a clear demonstration of the opportunity that EuroMena’s target regions (the Middle East and Africa) provide to foreign investors in terms of portfolio diversification.”
He added: “As of December 2016, EuroMena III had invested in three prominent companies in the FMCG, Retail, and Banking sectors operating in Nigeria, Tunisia, Morocco, Algeria, and Lebanon. A fourth investment should be closed in the coming weeks and we expect the Fund to be fully invested by end of 2017.”
The EuroMena Fund Management Team has been working in the region since 2005 and has built deep expertise in various industries, a solid reputation, and a leading market position. The Team is considered to be among the most active and efficient in the region in terms of sourcing, investing, managing, and exiting transactions. To date, it has successfully exited six investments, generating 2x money on the invested capital, and is on its way to realize three other exists by Q1 2017.
“The EIB is very pleased to have supported for the third consecutive time the EuroMena family with a commitment of $27 million from EC resources and The Kingdom of Spain-AECID in EuroMena III. Despite the difficulties in the region, EuroMena is playing a crucial role in developing the private sector growth and restoring employment in the Southern Mediterranean region which underpins the future aspirations of the region’s youth.” said Christian López-Baillo- EIB private equity operations.
The Fund follows a diversified investment strategy in countries and sectors selection to optimize the risk/reward profile of its investments. Sectors of interest include retail & consumer products, food & beverage, education & healthcare, energy, financial services, and information technology.
EuroMena’s strategy is focused on creating value in its portfolio companies through assisting them in formulating their expansion strategies and guiding them in growing their top and bottom lines at double digit rates. EuroMena is also highly involved in implementing solid corporate governance in its investee companies. To do so, the Fund leverages on its internal resources and its large network of prominent partners, investors, businessmen and advisors in the region.
Mr. David Weiss- Investment Manager at German Investment and Development Corporation (DEG), commented:
“We partnered with EuroMena because we like the investment strategy, the team and the unique regional focus on the Levant and Africa. The fund is run by an experienced team with a strong track record that generates investments with attractive returns and developmental impact.”
On the 7th of November 2016, EuroMena held the first advisory committee meeting of the Fund in London at the headquarters of the CDC Group. The committee is formed of some of the most active members of the fund’s network and its objective is to advise EuroMena across the investment cycle. Attendees included Mr. Philippe de Fontaine Vive (Ex-Vice President of the European Investment Bank), Mr. Tom Fletcher (Professor at New York University and former UK Ambassador to Lebanon), Mr. Aldo Cardoso (Board Member of a number of French-listed companies), Mr. Charles El-Hage (Ex-Senior Vice President of Booz Allen Hamilton), Mr. Carlos Abou Jaoude (Founder and Managing Partner of Abou Jaoude & Associates Law Firm), among others.
“The agility and success developed by the Team in the Mediterranean region will benefit to the whole African continent which offers wide perspectives”, added Mr. Philippe de Fontaine Vive.
Participants discussed the key economic dynamics shaping the private equity field in emerging markets, exchanged opinions on attractive investment opportunities, and explored promising strategic initiatives EuroMena plans to undertake. The diverse profile of the members in terms of areas and sectors of expertise significantly contributed to the enrichment of the discussions and the success of the meeting.