Egyptian private equity firm Tanmiya Capital Ventures (TCV) has raised $130 million for its second investment fund, exceeding its $120 million target with backing from international development finance institutions and local investors.
The fund’s final close follows a $37.5 million commitment from the European Investment Bank (EIB), through its development arm, EIB Global, to expand access to long-term growth capital for established Egyptian businesses.
Other participating institutions include the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), the Egyptian-American Enterprise Fund (EAEF) and Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA).
The fund will invest in six to eight companies across healthcare, training, fintech, consumer goods, logistics and transport, combining financial investment with operational support to drive business expansion, improve corporate governance and create jobs.
What to Know About Tanmiya Capital’s $130m Fund
Founded in 2016, Tanmiya Capital Ventures focuses on growth equity and private equity investments in established Egyptian businesses with significant expansion potential.
Through Fund II, the firm intends to support companies that need additional capital to strengthen operations, enter new markets and improve their competitiveness.
Unlike grants or conventional bank loans, private equity investments typically involve acquiring ownership stakes in businesses, with investors seeking financial returns as the companies grow in value.
TCV will therefore combine capital with strategic and managerial support, targeting businesses capable of generating sustainable growth.
The fund’s successful close above its original target also signals investor confidence in its strategy and the prospects of Egypt’s private sector.
Collaboration to Expand Business Financing
The European Investment Bank’s $37.5 million commitment played a significant role in helping the fund reach its final $130 million close.
The collaboration brings together international development institutions and Egyptian investors to address a persistent challenge facing established small and medium-sized businesses: limited access to long-term equity financing.
EIB Vice-President Gelsomina Vigliotti said the investment would provide local businesses with the resources and expertise required to expand.
“Egypt’s private sector has enormous potential to drive sustainable growth, create quality jobs and deepen economic ties with Europe,” he added.
IFC also highlighted the importance of partnering with experienced local fund managers to help promising and family-owned businesses strengthen operations, improve competitiveness and scale.
The collaboration is expected to mobilise capital while promoting sustainable and inclusive economic growth.
The Target Businesses for Expansion
Fund II will invest across six sectors: healthcare, training, financial technology, consumer goods, logistics and transport.
These industries represent areas where established businesses may require substantial financing to expand facilities, improve technology, strengthen distribution networks or reach new customers.
For example, healthcare providers could use investment to expand services, while fintech companies could improve digital financial products and logistics operators could strengthen their delivery and warehousing capabilities.
TCV expects to build a portfolio of six to eight companies, providing not only funding but also support to professionalise operations and improve corporate governance.
The strategy is intended to help portfolio businesses become more competitive in domestic markets and potentially strengthen their connections with regional and European partners.
Job Creation, Gender Equality and Egypt-Europe Business Links
Beyond business expansion, the fund is expected to support thousands of jobs across Egypt.
At least 30% of its portfolio companies are expected to meet one or more of the EIB’s gender equality financing criteria, reflecting an effort to promote more inclusive economic opportunities alongside commercial growth.
The investment also supports the European Union’s Global Gateway initiative and its broader engagement with Africa and the Mediterranean region.
Portfolio companies may source equipment, technology and services from European suppliers or develop commercial partnerships with European businesses, creating opportunities for cross-border trade and knowledge exchange.
TCV Managing Partner Ahmed El Guindy said the fund’s close above target reflected “strong investor confidence in our strategy and in the potential of Egypt’s private sector.”
The EIB will also contribute expertise in environmental, social and governance standards and international private equity practices through its participation in the fund’s advisory committee.
The fund’s longer-term impact will depend on the performance of its investments, the sustainability of the jobs created and the ability of participating businesses to translate capital into measurable growth.
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