AfricInvest, a pan-African mid-cap-focused private equity firm, has announced the final close of its North African Fund, Maghreb Private Equity IV (MPEF IV). 

The African Development Bank joined the third and final investment round, committing EUR20m to the fund and taking the fund’s total capital commitments to €194m, in line with the fund’s target size.

“MPEF IV is a vehicle perfectly aligned with our strategic goals to strengthen the capabilities of ambitious midsize companies in North Africa to expand into new markets in sub-Saharan Africa,” said Dr. Abdu Mukhtar, Director of Industrial and Trade Development at the African Development Bank. 

“Our investment in MPEF IV will enable the growth of high value cross-border investment and strengthen regional linkages, generating valuable foreign exchange and stimulating job creation,” he said.

Brahim El Jai, AfricInvest Executive Partner, said: “We are particularly happy to welcome our long-standing partner, the African Development Bank, to the fund. This new commitment will enable the MPEF IV team to continue identifying, screening, funding and supporting the most promising entrepreneurs and innovators across North Africa.”

The fund reached a first close of €152m in November 2017 and a second close of €173m in October 2018. 

In addition to the African Development Bank, fund backers include: CDC UK, EBRD, FMO, DEG, EIB, IFC, BIO, IFU, SIFEM, Proparco (first close), OeEB and a prominent South African fund of funds (second close).

MPEF IV is a 10-year fund that will invest in small and medium enterprises in North Africa (including Algeria, Egypt, Morocco, and Tunisia), looking to take substantial minority stakes. 

The fund’s strategy will target companies that are well-established in their local markets and have the potential to scale up their activities at the regional level, in the Mediterranean basin, and across the African continent.

Ziad Oueslati, AfricInvest Founding Partner, said: “The MPEF IV final close is a powerful affirmation of our LPs’ continued support for the North Africa region and their belief that North African companies can create significant value across and beyond the region.”