Cairo, Egypt, October 7, 2020—IFC,
a member of the World Bank Group, today announced an investment in an Egyptian
private equity fund to help improve access to capital for small-
and medium-sized companies in the country, supporting their resilience,
growth, and ability to create jobs amid the challenges of COVID-19.
IFC’s $25 million investment in the LCP Fund
managed by Egypt-focused private equity fund manager, Lorax Capital Partners,
highlights IFC’s strategy of working with fund managers to meet the needs
of fast-growing companies, mobilize institutional capital in high-growth
sectors, and ultimately strengthen capital markets.
The LCP Fund II will make growth equity investments
in mid-cap companies in several sectors, including consumer goods and financial
services. The fund is targeting $250 million of equity commitments, with
a first closing completed in September. Globally, private equity has emerged
as a critical source of financing, especially for mid-cap companies.
Walid Labadi, IFC’s country manager for Egypt,
Yemen and Libya, said, “We expect IFC’s participation will help bring
in more private capital into the Egyptian private equity market, increasing
its competitiveness, diversifying the investor base, and ultimately improving
access to capital for mid-cap Egyptian companies, which can become drivers
of job creation and sustainable economic growth.”
The new fund will concentrate on companies
seeking to expand geographically and those working on import substitution
strategies. IFC plans to participate in future co-investment opportunities
alongside Lorax Capital Partners.
Private equity and venture capital play a
critical role in development, helping to build the dynamic, job-creating
companies that drive economic growth and provide essential goods and services.
In fiscal year 2020, which ended on June 30, IFC invested $57 million in
private equity and venture capital funds to support businesses in the Middle
East and North Africa.
IFC—a member of the World Bank Group—is
the largest global development institution focused on the private sector
in emerging markets. We work in more than 100 countries, using our capital,
expertise, and influence to create markets and opportunities in developing
countries. In fiscal year 2020, we invested $22 billion in private companies
and financial institutions in developing countries, leveraging the power
of the private sector to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About Lorax Capital Partners
Incorporated in 2015, Lorax Capital Partners
(LCP) is an Egypt-focused private equity firm currently managing the funds
of the Egyptian American Enterprise Fund (EAEF) and was responsible for
its investments in Fawry for Banking and Payment Technology Services, the
leading electronic payments platform in Egypt, and Sarwa Capital, a pioneer
in consumer finance, leasing and securitization in Egypt. LCP is very well
positioned to serve as a ‘bridge’ between Egypt and global investors
who are looking to generate attractive risk-adjusted returns while contributing
to the economic development of the country. LCP’s management team has
an unmatched track record in sourcing, executing, and managing transactions
in Egypt with a combined transaction execution value of over USD 46 billion.
Further details on LCP can be found at http://www.loraxcapitalpartners.com.