The European Bank for Reconstruction and Development (EBRD) is committing up to pound 30 million to Mediterrania Capital IV (MC IV), the new fund raised by Mediterrania Capital Partners. MC IV seeks to generate long-term capital gains from equity and equity-related investments in mid-cap companies in Tunisia, Egypt and Morocco.

"Through this investment, the Bank aims to contribute to the resilience of financial markets by sustaining private equity as an alternative funding source in North Africa," reads an EBRD press release on Friday.

It follows two previous EBRD investments in Mediterrania Capital's funds: MC II and MC III. Over the past 10 years these two funds have invested in 15 small and medium-sized enterprises (SMEs) and mid-cap companies in Africa, delivering aggregated annual revenues of pound 1.5 billion and employing more than 22,000 people.

The MC IV aims to invest up to pound 350 million in African businesses to support them in reaching their full operational potential and generate financial returns for investors. Mediterrania Capital's funds target mid-cap companies operating in sectors that are crucial to furthering development, including education, financial services, healthcare, pharmaceuticals, construction and consumer staples.

The Mediterrania Capital takes a proactive, hands-on approach to implementing sustainable growth strategies and ESG processes across all its investments. This approach enables portfolio companies to deliver higher-than-average EBITDA and revenue growth rates and promote responsible development.

Source: Agence Tunis Afrique Presse