ADB Group Private Sector First Private Equity Investment in the Maghreb Region
Tunis, 16 January 2008 - The Board of Directors of the African Development Bank (ADB) approved an equity investment of EUR 20 million in the Maghreb Private Equity Fund 2 (MPEF-2). As one of the lead investors in the Fund, the Bank will have a seat on the Advisory Committee, an observer status on the Investment Committee and will enjoy priority co-investment rights in MPEF 2.
MPEF 2 is a 10-year mid-size fund that will make investments principally in Morocco, Algeria, Tunisia, and Libya. It will target companies capable of becoming regional champions that are currently generating revenues of between EUR 5 million and EUR 50 million. The Fund will invest in a broad variety of sectors such as manufacturing and agribusiness; packaging; telecom and technology; transportation; petrochemicals & plastic industries; pharmaceuticals; construction materials production; financial services; independent power production units.
MPEF 2 will focus on businesses in high-growth industries seeking capital, contacts, and know-how to facilitate expansion into the Maghreb regional markets as well as overseas. The Fund will provide new avenues for public listing and access to multiple stock exchanges for local companies. The Fund’s activities will create cross-border jobs and employment opportunities triggered by the multiplier effect of direct investments, co-financing and parallel investments from the fund and its DFI investors.
MPEF 2 is the Bank’s first private equity investment targeted for the Maghreb region. The Fund will direct its investments to create regional champions by strengthening selected small and medium scale enterprises. In the process, it will be a catalyst for regional integration in the sub-region. MPEF 2 is sponsored by the Tuninvest Finance Group (TFG), a leading indigenous Tunisian Private Equity Group with strong expertise, experience and footprint in the sub-region. TFG currently has nine private equity funds under management.