Actis' Fund IV does second deal

The $102m investment in an Egyptian snack food business comes as the emerging market specialist is wrapping up fundraising for its fourth global fund.

Actis has agreed to invest $102 million in Edita Food Industries, a snack food business in Egypt. 

The investment was made from its Actis Emerging Markets III, a $2.9 billion 2008 vintage, and its Actis Global 4, which had collected approximately $1 billion, according to a US Securities and Exchange Commission filing in January. Fund IV’s target was revised from $3.5 billion to $1.6 billion earlier this year, sources told Private Equity International.

It is unclear how much equity each of the funds provided for the investment. 

Edita is an independent snack food business in North Africa. It sells about 2.5 billion pieces of croissants, cakes and wafers a year. 

Actis hopes to benefit from the growing food market in Egypt. Despite uncertainty created by the Arab Spring, Edita’s revenues have grown by 21 percent annually since 2009. Because of a young and growing population and a rise in middle classes, there’s a strong appetite for quality branded snack foods, according to Actis. “Even in difficult times, consumers want affordable and easy-to-eat treats,” it said in the statement.

“This investment demonstrates our long term commitment to Egypt’s prosperity and our confidence in an important market,” Rick Philips, head of consumer at Actis, said in the statement. 

This is the second investment Actis has made from this fund. Last September, it invested S$68m in CNA, a provider of English language training in Brazil. Part of the equity for this investment came from the new fund.