EIB Global Commits $37.5M to Tanmiya Capital Fund II as Egyptian Growth Vehicle Closes Oversubscribed at $130M
The European Union's development arm anchors the final close of Tanmiya Capital Ventures' second growth equity fund, exceeding its target by 8.3% to scale mid-market Egyptian SMEs.
The anchor LP commitment propelled the fund to a final close of $130.0 million (~EGP 6.42 billion), exceeding its initial $120.0 million fundraising target by 8.3% (or 10% over base).
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Institutional LP Syndicate & Capital Deployment Strategy
Managed by independent Egyptian private equity manager Tanmiya Capital Ventures (TCV), TCF II pools international and domestic institutional capital under a unified growth equity thesis:
LP Syndicate Composition: EIB Global joins an institutional investor base including 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).
Portfolio Allocation: Targets growth-stage equity investments in 6 to 8 established Egyptian SMEs across high-growth domestic sectors, including healthcare, education and training, fintech, consumer goods, logistics, and transport.
Gender Lens & ESG Framework: Under Team Europe’s Global Gateway initiative, at least 30% of portfolio companies will meet EIB gender-equality financing criteria. EIB Global will also take a seat on the fund's Advisory Committee to enforce international ESG and governance standards.
Economic Impact & Private Sector Mandate
TCF II aims to address Egypt's long-term equity financing deficit for mid-cap enterprises, providing patient capital to improve operational governance and facilitate regional expansion:
SME Missing Middle: Targets companies seeking primary growth capital that fall outside traditional bank lending profiles and early-stage venture capital.
Commercial Integration: Aims to strengthen trade corridors between Egypt and the European Union by encouraging portfolio companies to source equipment, technology, and operational services from European partners.
Executive Statements
"Egypt's private sector has enormous potential to drive sustainable growth, create quality jobs and deepen economic ties with Europe," stated Gelsomina Vigliotti, Vice-President of the European Investment Bank. "Our investment in Tanmiya Capital Fund II will provide ambitious local companies with the growth capital and expertise they need to expand. It also reflects the European Union's commitment, through Global Gateway and the new Agenda for the Mediterranean, to supporting a more competitive, inclusive and resilient Egyptian economy."
"The successful closing of Tanmiya Capital Fund II above its target reflects strong investor confidence in our strategy and in the potential of Egypt's private sector," added Ahmed El Guindy, Managing Partner of Tanmiya Capital Ventures. "The EIB's commitment brings not only capital, but also valuable international expertise and a shared focus on sustainable growth, strong governance and long-term value creation. Together, we will support ambitious Egyptian companies as they scale up, become more competitive and expand their links with regional and European markets."
"Our investment in Tanmiya Capital Ventures Fund II reflects IFC's commitment to strengthening Egypt's private sector by expanding access to the long-term growth capital businesses need to grow and create jobs," stated Ary Naïm, IFC's Division Director for North Africa and the Horn of Africa. "By partnering with experienced local fund managers, we can help promising Egyptian companies, including family-owned businesses, strengthen their operations, become more competitive, and scale."
"Our investment in Tanmiya Capital Fund II reinforces MSMEDA's Fund of Funds program mandate, through which we partner with experienced private equity and venture capital managers and support emerging ones to crowd in private and international capital into promising Egyptian companies," noted Mostafa Ismail Hassan, CEO of Egypt's Micro, Small and Medium Enterprise Development Agency.
"The fund's oversubscribed close is a strong signal of investor confidence, and our commitment reflects our firm belief in the long-term fundamentals of the Egyptian economy and the central role of its private sector in driving growth and job creation," added Yasmine Ghobrial, Chief Investment Officer of the Egyptian-American Enterprise Fund.
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