The European Investment Bank is mulling whether to invest $16 million in Maghreb Private Equity IV, a €200 million ($214.5 million) generalist closed-end fund managed by AfricInvest. The fund makes growth capital investments in small and medium-sized businesses in Tunisia, Morocco, Algeria and Egypt.
It’s likely the investment will be approved as this won’t be the first time that the EIB has backed one of AfricInvest’s Maghreb region funds. The development finance institution has participated in all three of Maghreb IV’s predecessors.
While more details of the new fund’s strategy were not immediately available, AfricInvest’s €150 million Maghreb Private Equity Fund III aimed to make investments averaging between €8 million and €9 million in private businesses in the region. According to investment proposal summaries, the 10-year fund had a 4-year investment period, which had an option to be extended by a year.
According to the firm’s website, Maghreb III has made 12 investments, 11 of which remain in the fund’s portfolio. AfricInvest announced a full exit for the fund from Grupo San Jose & Lopez, a logistics frim it first backed in 2013.