The private equity unit of Egyptian bank EFG-Hermes has more than tripled its previous private equity fundraising effort, closing a $555 million (€365 million) third fund to invest in Egypt and North Africa, according to a statement.
The firm’s previous fund raised $155 million and its first fund closed on $54 million in 2000. Egyptian and regional financial institutions as well as high-net worth individuals invested in the latest fund.
Samer Yassa, a partner at EFG-Hermes Private Equity, said in a statement the previous fund had returned more than 80 percent of its principal investment to investors in two years at a realised internal rate of return of more than 70 percent.
EFG-Hermes has been growing rapidly. Middle Eastern private equity firm Abraaj Capital sold its 24.62 percent stake in the bank for double its initial investment after just one year through a $1.1 billion sale to local rival Dubai Financial Group.
The Egyptian market was the source of one of Africa’s largest-ever buyouts last year when Abraaj led a consortium to buy Egyptian Fertilizers Company for $1.41 billion in June.