Tanmiya Capital Ventures (TCV) intends to deploy around USD 80m to invest in mid-sized Egyptian companies over the next two or three years, according to statements made by Managing Partner Mohamed Mahgoub (LinkedIn) to Enterprise Morning Edition, following the firm's oversubscribed second fund closure last June. Mahgoub clarified that the second fund closed at USD 130m, exceeding its target of USD 120m by USD 10m, after an initial closing of USD 97m in December 2024. The European Investment Bank (EIB) joined the list of participating investors in the fund's final close, having agreed to inject up to USD 37.5m—representing one-fourth of its maximum size cap of USD 150m—and has already invested USD 32.5m, according to Mahgoub.
In return, the EIB seeks to create commercial opportunities for European companies; as the bank provides this investment under the EU's Global Gateway package and the New Agenda for the Mediterranean. According to the bank, portfolio companies invested in by the fund may source equipment, technology, and services from European suppliers or establish partnerships with European firms.
All fund limited partners are Development Finance Institutions (DFIs): Alongside the EIB's USD 37.5m contribution, Fund II investors include the Egyptian-American Enterprise Fund (USD 50m), the European Bank for Reconstruction and Development (USD 20m), the International Finance Corporation (up to USD 20m), and the state-backed Micro, Small and Medium Enterprises Development Agency (USD 2.5m).
The EIB expects the fund's portfolio to ultimately comprise between 6 and 8 companies across the healthcare, training, fintech, consumer goods, logistics, and transportation sectors, with at least 30% of portfolio companies meeting one or more of the bank's gender equality criteria. Mahgoub stated that the fund has so far invested in pharmaceutical manufacturer Copad and El Abd Patisserie.
Tanmiya Capital Ventures is seeking an exit route for both current investments in Fund II. Mahgoub told Enterprise last March that plans for listing Copad Pharma were moving on schedule for an initial public offering (IPO) in Q4 of the year, managed by investment bank EFG Hermes, with timing contingent upon clear signs of market recovery or investors becoming "accustomed" to the war with Iran. Since then, Ahmed Hosny, Chairman of Copad, stated that the listing may be postponed to Q1 2027, and that the offering would primarily consist of a secondary sale of existing shares, with a free float ranging between 20-30%, allowing Tanmiya Capital Ventures—which holds a 21% stake—to exit. As for El Abd Patisserie, Mahgoub stated during a forum held last February that the company might head to the Egyptian Exchange (EGX) as a potential exit route, possibly next year.
REMEMBER: Mahgoub warned in an interview under the Spotlight series last February that DFIs already account for a major share of capital flowing into the local private equity sector, noting that "investments by international institutions should only act as a catalyst […] and cannot permanently hold the largest percentage," stressing that the private equity market in Egypt will not reach maturity unless local pension funds and domestic insurance companies begin allocating a portion of their investments to local funds.
