Swiss Investment Fund
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SPE PEF III

The generalist private equity fund invests in fast-growing small and medium-sized companies (SMEs) primarily in North Africa and in the healthcare, education, manufacturing & processing, and business services sectors.

SPE PEF III

The generalist private equity fund invests in fast-growing small and medium-sized companies (SMEs) primarily in North Africa and in the healthcare, education, manufacturing & processing, and business services sectors.

Investment strategy

The fund provides growth capital to SMEs and fast-growing companies with a solid historical operating and financial performance. It will make majority or significant minority stakes with a view to take a hands-on value add approach as many investments will need to embrace transformative projects.

Development Rationale

It is estimated that of Africa‚Äôs youth aged 15-35, one-third are unemployed and discouraged, and another third are vulnerably employed. As millions of young people join the labour market, the pressure to provide decent jobs will intensify. The fund supports the creation of better jobs and management positions for young employees. Through its hands-on approach, the fund manager is expected to help mobilize additional financing for the growth companies. A significant amount of the fund’s investment is expected to be allocated to education and healthcare.

Investment Rationale

Through the provision of long-term capital to SMEs the fund helps to fill a severe financing gap. It is dedicated to creating more quality jobs in a region where over one third of the younger population is unemployed. The fund manager has proven in the past to deliver on this goal. With this commitment, SIFEM supports a long-term partner with an excellent track record alongside other DFIs.

Contribution to strategic objectives

  • Job creation
  • Contribution to essential goods/innovation
  • Priority countries
  • Gender equality: fulfilling criteria 3 (Employment) and 5 (Investment through Financial Intermediaries)

Additionality

  • Financial Additionality: supporting an existing partner with longterm capital, contributing to first close in a challenging fundraising environment.
  • Sustainability Additionality: applies responsible investment policy and promotes gender equality.
Reference code
2023-06
Status
Committed
Date of commmitment
December 2023
Date of exit
-
SIFEM commitment
USD
15,000,000
Asset class
Private Debt
Investment strategy
Investment through Fund

Target focus

Healthcare
Education
Business activities and services
Manufacturing and Processing

Target countries

Egypt, Arab Rep.
Tunisia
Morocco
Fund manager
SPE Capital Partners Ltd.