The European Investment Bank (EIB) has agreed to invest $15m in Egypt Mid-Cap, a generalist private equity fund targeting growth capital investments in small and medium-sized private companies in Egypt. 

The fund has attracted $85m of commitments, including $70m from other international and local co-investors. 

Current investors include EBRD, CDC Group, FMO and local investors.

Managed by Ezdehar Management, the fund will target growth capital investments in Egyptian SMEs that are seeking to grow their business at above average growth rates. 

The fund investments are expected to create between 1200 - 1600 direct new jobs. 

The fund has a target size of $100m with a hard cap of$120m. 

This is the first EIB operation signed in Egypt under the Risk Capital Facility for the Southern Neighbourhood Countries and the first investment in an Egyptian fund since 2011.

The EIB Risk Capital Facility is part of the "EU Initiative for Financial Inclusion", which has been developed jointly by the European Commission and several European Financial Institutions, among them the EIB. 

The initiative is a comprehensive programme to help micro, small and medium-sized businesses in the southern and eastern Mediterranean region to become more competitive and grow. 

It provides finance and know-how to boost development and create jobs. In this way, it contributes to job creation and economic growth in the Southern Neighbourhood Countries.