IFC to invest $20m in Egypt’s TCV II

The International Finance Corporation (IFC), the investment arm of the World Bank Group, is considering an equity investment of up to $20 million into the Egyptian Tanmiya Capital Ventures Fund II (TCV II), a growth capital private equity fund seeking to raise $150 million.

TCV II, a private equity growth expansion fund managed by Tanmiya Capital Ventures (TCV), aims to invest in mid-cap companies across various sectors, including food and beverage, logistics, pharmaceuticals, healthcare, and higher education. The Fund aims to foster the institutionalisation of family businesses in Egypt and focuses on the wider additionality of availing growth capital funding for successful Egyptian midcap companies.

According to the disclosure, the project is pending IFC Board’s approval, with environmental and social considerations included as per IFC’s Access to Information Policy. “IFC’s additionality is both financial and non-financial.” the IFC said, adding that Its financial support will be required for the fund to achieve its first close.

“Fundraising activity in Egypt saw some activities during 2022-2024 after a period of stagnation since 2011, primarily driven by regional funds mitigating risk. Non-financial additionality involves non-commercial risk mitigation, by encouraging other investors to invest in the Fund, as well as standard setting to support the Fund Manager in implementing ESMS in line with IFC standards and promote gender diversity internally and across investees.”

Attribution: IFC disclosure

Subediting: Y.Yasser