TCV Partners announce first close of maiden mid-cap investment fund, TCV1
March 27, 2017
Anchor limited partners include the Egyptian-American Enterprise Fund and EFG Hermes; TCV1 aims to deploy EGP 250-300 million by year’s end in sectors including industrial processing, alternative energy and specialized healthcare
(Cairo, 27 March 2017) Egyptian investment firm TCV announced today that it has reached first close on its first fund, TCV1, which focuses on transforming successful Egyptian midcap companies into scalable institutional platforms.
Anchor limited partners in the first close include Egyptian-American Enterprise Fund (EAEF, a leading US investment fund that identifies and addresses gaps in financing markets for entrepreneurs and small businesses) and EFG Hermes (the leading regional financial services corporation).
EAEF Executive Director Amal Enan has joined TCV’s Investor Advisory Board, as has EFG Hermes Group Chief Financial Officer Mohamed Abdelkhabir.
TCV1 will invest in mid-sized Egyptian companies in industries including exporters, manufacturers of import substitutes, and other highly defensive sectors including specialized healthcare service providers and FMCG producers, among others. TCV1 invests both capital and deep operational know-how to help existing owners of companies unlock new growth opportunities.
“We are honored to have reached first close with these distinguished anchor LPs and are now working to capitalize on our first-mover advantage in the mid-cap space with the goal of deploying EGP 250-300 million in investments by the end of this year. To that end, we are now in advanced discussions with four investment targets in the industrial processing, alternative energy and specialized healthcare sectors,” said Karim Hassan, managing partner at TCV.
Commenting on EAEF’s commitment to TCV1, Chairman James Harmon said: “In choosing where to commit capital, we look for strong management teams in underserved markets, with the aim of broadening the range of goods and services, improving quality of life and attracting new foreign investors to domestic markets.”
EAEF’s Enan added that “TCV’s team has an important first-mover advantage and both the investment and operational know how to identify the right investment opportunities and to create new value moving forward.”
“Following on our acquisition of leading microfinance house Tanmeyah in early 2016, our investment in TCV’s first fund comes as part of our commitment to creating value for our shareholders while supporting Egyptian SMEs, the sector from which the next generation of great Egyptian companies and home-grown multinationals will emerge. The companies in which TCV will invest — and others like them — are among those that will deepen tomorrow’s capital markets through initial public offerings, grow through mergers and acquisitions, and become potential targets for strategic investors. We are proud to partner with EAEF in supporting the TCV management team by seeding this exciting venture,” said EFG Hermes Group Chief Executive Officer Karim Awad.
TCV also disclosed today external appointees to its investment committee, including the high-profile entrepreneur Christopher Khalifa (founder of the Zooba casual dining chain) and Gihan Fathy, a 17-year veteran in the private equity space, who will serve alongside the executive team on the investment committee.