The Swiss Investment Fund for Emerging Markets (SIFEM) has participated in a rights issue of the Maghreb Private Equity Fund III (MPEF) by committing an additional €1.75m.

With more than a year left of the investment period and a strong pipeline, the manager of the fund has solicited existing investors to make follow-on commitments of 25% of their original investments.

This will increase SIFEM's investment into MPEF III from €7m to €8.75m.

“SIFEM's follow-on investment will play a counter-cyclical role in the challenging private equity fundraising environment in North Africa post-Arab Spring, and promote private sector development, employment creation and economic growth in the target countries,” SIFEM said in the statement.

The fund, which was launched in November 2011, is already close to be fully invested.

MPEF III is a €96.5m fund, providing growth capital in the range of €8m-10m to SMEs with the potential to become regional players in the Maghreb region (Tunisia, Algeria and Morocco), and opportunistically in Egypt, Libya and some European countries (SIFEM received an opt-out for Libya and Europe).

Having invested in MPEF III’s predecessor funds, Tuninvest International, Maghreb Private Equity I (MPEF I), Maghreb Private Equity II (MPEF II) and Africinvest II, SIFEM has a long and successful relationship with the fund manager Tuninvest, who is “one of the most seasoned and reputable fund managers in the region”.

“Notably, SIFEM’s investment in MPEF III comes at a time where strong signals of continued support are critical for sustainable economic development in the countries of the MENA region,” said SIFEM.