Tanmiya Capital Fund II has reached a $130 million final close after securing a $37.5 million commitment from the European Investment Bank through its development arm, EIB Global.
The fund exceeded its $120 million fundraising target and will provide growth capital to established small and midsize companies across Egypt.
Tanmiya Capital Fund II is managed by Egypt-based private equity firm Tanmiya Capital Ventures and will target businesses seeking capital to expand operations, strengthen governance, professionalize management, and improve competitiveness.
The fund expects to invest across sectors including healthcare, training, financial technology, consumer goods, logistics, and transportation.
Alongside the EIB, investors include the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development, the International Finance Corporation, and Egypt’s Micro, Small and Medium Enterprise Development Agency.
The fund is expected to build a portfolio of approximately six to eight companies and support thousands of jobs across Egypt.
At least 30% of portfolio companies are expected to meet one or more of the EIB’s criteria for financing that supports gender equality.
The investment is also intended to strengthen commercial ties between Egypt and Europe. Portfolio companies may source equipment, technology, and services from European suppliers or develop partnerships with European businesses.
The EIB said the transaction addresses the limited availability of long-term equity financing for Egyptian small and midsize businesses.
In addition to capital, the fund is expected to provide strategic and managerial support to portfolio companies, helping them scale and improve operating performance.
The EIB will also contribute expertise in environmental, social, and governance standards and international private equity practices through participation on the fund’s advisory committee.
Founded in 2016, Tanmiya Capital Ventures focuses on growth equity and value-add investments in mid-market Egyptian companies.
The $130 million closing reflects growing institutional interest in Egypt’s private sector and gives Tanmiya additional capital to back businesses seeking to expand domestically and across regional markets.
KEY QUOTES:
“Egypt’s private sector has enormous potential to drive sustainable growth, create quality jobs and deepen economic ties with Europe. Our investment in Tanmiya Capital Fund II will provide ambitious local companies with the growth capital and expertise they need to expand.”
Gelsomina Vigliotti, Vice-President Of The European Investment Bank
“The successful closing of Tanmiya Capital Fund II above its target reflects strong investor confidence in our strategy and in the potential of Egypt’s private sector. The EIB’s commitment brings not only capital, but also valuable international expertise and a shared focus on sustainable growth, strong governance and long-term value creation.”
Ahmed El Guindy, Managing Partner Of Tanmiya Capital
“Our investment in Tanmiya Capital Ventures Fund II reflects IFC’s commitment to strengthening Egypt’s private sector by expanding access to the long-term growth capital businesses need to grow and create jobs.”
Ary Naïm, Division Director For North Africa And The Horn Of Africa At IFC
“The fund’s oversubscribed close is a strong signal of investor confidence, and our commitment reflects our firm belief in the long-term fundamentals of the Egyptian economy and the central role of its private sector in driving growth and job creation.”
Yasmine Ghobrial, Chief Investment Officer Of The Egyptian-American Enterprise Fund
