Investment in Mediterrania Capital IV by DEG is amplified to stimulate economic expansion in North and West Africa regions
In a significant move for the African private equity landscape, Mediterrania Capital IV (MC IV) has secured an additional EUR 15 million (USD 16.2 million) investment from DEG, a German development finance institution. This brings DEG's total investment in MC IV to EUR 25 million (USD 27 million).
MC IV, managed by Mediterrania Capital Partners, focuses on growth investments in mid-sized companies across North and West Africa. The fund targets core sectors essential for economic development, such as healthcare, logistics, fast-moving consumer goods, education, and financial services.
The increased investment from DEG signifies a strong endorsement of MC IV's strategy and execution capabilities. DEG's involvement not only provides capital but also underpins the development finance aspect, aligning investment returns with positive socioeconomic impacts in underfinanced markets in North and West Africa.
DEG's support aims to help MC IV's portfolio companies enhance operational efficiency, reduce CO2 emissions, incorporate renewable energy solutions, and improve sustainability practices. The progress of MC IV will be closely observed due to growing interest in African markets.
One of MC IV's recent investments was in Cash Plus, a leading Moroccan fintech company, made in October 2023. This investment underscores MC IV's commitment to fostering scalable businesses that contribute to economic diversification, job creation, and improved access to essential goods and services in the region.
The growth of MC IV's portfolio could further strengthen its influence on the African private equity landscape. Around 75% of MC IV's capital is allocated to North Africa, while 25% is directed toward Sub-Saharan Africa. MC IV continues to deploy capital and scale its investments across African markets.
MC IV is a 2X Challenge fund, committed to promoting gender equality. It adopts targeted measures to ensure gender diversity is embedded in its investment strategy. The fund aims to invest in 8 to 10 companies, each receiving between EUR 20 million (USD 21.6 million) and EUR 50 million (USD 54 million).
The success of MC IV could serve as a benchmark for how private equity can shape the next phase of Africa's economic growth. There is increasing recognition of the potential of African markets for private equity investment. The fund's success will be closely watched as a potential model for private equity investment in Africa.
[1] Mediterrania Capital Partners. (n.d.). Mediterrania Capital IV. Retrieved from https://www.mcp-partners.com/funds/mediterrania-capital-iv/
[2] Deutsche Investitions- und Entwicklungsgesellschaft (DEG). (n.d.). Mediterrania Capital IV. Retrieved from https://www.deginvest.de/en/investments/private-equity/africa/mediterrania-capital-iv
[3] African Private Equity and Venture Capital Association (AVCA). (n.d.). Mediterrania Capital IV. Retrieved from https://avcaalliance.org/fund/mediterrania-capital-iv/
[4] Private Equity International. (2023, October 24). Mediterrania Capital Partners invests in Moroccan fintech Cash Plus. Retrieved from https://www.peimedia.com/news/11514193/mediterrania-capital-partners-invest-moroccan-fintech-cash-plus
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