Mediterrania Capital Partners (MCP), a private equity firm has secured an additional €15 million (around $16.3 million USD) from DEG, bringing DEG’s total investment in the fund to €25 million. This follows DEG’s first investment in the fund in May 2023.
The new funds will help expand the firm’s operations and support its growing investments in Mediterranean and Sub-Saharan Africa. Mediterrania Capital Partners has launched its fourth fund with a goal to focus on investing in the growing mid-market sector in these regions.
MC IV plans to invest in 8 to 10 companies, with investments ranging from €20 million to €50 million each. The fund will focus on buying minority stakes in established, mid-sized companies that have strong growth potential.
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The fund will invest in sectors like healthcare, logistics, fast-moving consumer goods (FMCG), education, and financial services. Most of the funds (75%) will go to North Africa, and the remaining 25% will go to Sub-Saharan Africa.
DEG’s increased investment will also include support through its subsidiary, DEG Impulse, which will help companies in the portfolio improve their operations, sustainability, and overall performance.
DEG’s approach of providing both financial investment and strategic support shows its commitment to promoting long-term sustainable growth in Africa’s private equity market.
DEG first invested in MC IV in May 2023 as part of a larger €75 million fundraising for the Laprophan acquisition. Other major development finance institutions like FMO and Proparco also participated in this deal.
The ongoing support from DEG and other DFIs highlights the growing recognition of the potential in Africa’s private equity market and their important role in driving economic development.
About Mediterrania Capital Partners
Mediterrania Capital Partners is a private equity firm that focuses on investing in growing small and medium-sized businesses (SMEs) and mid-sized companies in Africa. It invests in companies with annual revenue between €20 million and €300 million, aiming to help them expand into North and Sub-Saharan Africa.
