Industry
The loans will enable Egyptian small and medium-sized enterprises to better cope with the consequences of the pandemic (photo: EBRD).
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EGYPT / EU. The European Bank for Reconstruction and Development (EBRD) announced on Thursday 1 October 2020 that it would invest "up to $50 million (€42.56 million)" in the LCP II Private Fund. This sum will enable Lorax Capital Partners (LCP), an independent fund based in Cairo, to take stakes in Egyptian small and medium-sized enterprises (SMEs) and "strengthen the resilience of the financial sector in Egypt", as stated in an EBRD press release.
"Equity capital raising is facing extremely difficult times in the South and East Mediterranean (SEMED) region due to the Covid-19 pandemic and small businesses are facing reduced activity and a lack of liquidity," the EBRD said. "The EBRD's investment in LCP Fund II contributes to the development of private equity in Egypt and will help provide long-term capital growth for small and medium-sized enterprises in the region," says Anne Fossemalle, EBRD Director and head of the investment funds team.
LCP has already raised $142m (€120.8m) with the EBRD's help in September 2020, enabling it to launch its first private equity fund. The fund is targeting total commitments of $250m (€212.8m).
The EBRD had already invested in another Egyptian fund, Ezdehar Egypt Mid-Cap Fund, in 2016. LCP is therefore its second investment in a private equity fund in the country.
"Equity capital raising is facing extremely difficult times in the South and East Mediterranean (SEMED) region due to the Covid-19 pandemic and small businesses are facing reduced activity and a lack of liquidity," the EBRD said. "The EBRD's investment in LCP Fund II contributes to the development of private equity in Egypt and will help provide long-term capital growth for small and medium-sized enterprises in the region," says Anne Fossemalle, EBRD Director and head of the investment funds team.
LCP has already raised $142m (€120.8m) with the EBRD's help in September 2020, enabling it to launch its first private equity fund. The fund is targeting total commitments of $250m (€212.8m).
The EBRD had already invested in another Egyptian fund, Ezdehar Egypt Mid-Cap Fund, in 2016. LCP is therefore its second investment in a private equity fund in the country.
