Tanmiya Capital Closes $130 Million Egypt Fund With EIB, IFC Backing

Tanmiya Capital Ventures has closed its second fund at $130 million, exceeding the $120 million target it set for the vehicle. The Cairo-based private equity firm said the final close drew backing from international and local institutional investors.

The European Investment Bank committed $37.5 million through EIB Global, its development arm. That commitment helped Tanmiya Capital Fund II reach its final close, the firm said.

Other investors include the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development, the International Finance Corporation and MSMEDA, the state agency that supports smaller companies in Egypt.

The mix brings development finance, multilateral capital and local market knowledge into a fund managed by an independent Egyptian firm. Tanmiya Capital Ventures was founded in 2016 and invests growth equity and private equity in mature companies in Egypt's middle market.

A portfolio of six to eight companies

Fund II is expected to build a diversified portfolio of six to eight companies. It will look at healthcare, training, financial technology, consumer goods, logistics and transport. The fund plans to supply capital and operational support to help those businesses expand, professionalise their operations and compete more effectively.

At least 30% of the fund's portfolio companies are expected to meet one or more of the EIB's gender equality financing criteria. The fund is also expected to support job creation and better corporate governance across its holdings.

The EIB investment was announced at a ceremony in Cairo. EIB Vice-President Gelsomina Vigliotti attended, along with Tanmiya Capital Ventures Managing Partners Ahmed El Guindy, Youssef Ahmed Ayoub and Mohamed Mohsen Mahgoub.

The EIB said its commitment is meant to widen access to growth capital for established small and medium-sized companies in Egypt. The bank framed the investment around a gap in the market: long-term equity finance is limited for such firms. Capital alone is not the point. The fund pairs it with strategic and managerial support that is meant to help portfolio companies scale, improve governance and create jobs.

Vigliotti said Egypt's private sector has the potential to drive sustainable growth, create quality jobs and deepen economic ties with Europe. She said the EIB investment in Fund II will give local companies growth capital and expertise to expand.

"This investment reflects the EU's commitment, through Global Gateway and the new Agenda for the Mediterranean, to support a competitive, inclusive and resilient Egyptian economy," she said.

This investment reflects the EU's commitment, through Global Gateway and the new Agenda for the Mediterranean, to support a competitive, inclusive and resilient Egyptian economy,

Ahmed El Guindy, a managing partner at Tanmiya Capital, said the close above target reflects strong investor confidence in the firm's strategy and in Egypt's private-sector potential. He said the EIB commitment brings capital, international expertise and a shared focus on sustainable growth, strong governance and long-term value creation.

"The partnership will support Egyptian companies as they scale up, become more competitive and expand links with regional and European markets," he said.

Ary Naïm, IFC Division Director for North Africa and the Horn of Africa, said the IFC investment reflects a commitment to strengthening Egypt's private sector by expanding access to long-term growth capital. Naïm said experienced local fund managers can help promising Egyptian companies, including family-owned businesses, strengthen operations, become more competitive and scale.

He said the investment is part of IFC work to mobilize private investment and support sustainable, inclusive growth in Egypt.

Mostafa Ismail Hassan, chief executive of MSMEDA, said the investment reinforces the agency's Fund of Funds program mandate. Hassan said MSMEDA partners with experienced private equity and venture capital managers and supports emerging ones to crowd in private and international capital into promising Egyptian companies.

He said Tanmiya Capital Fund II will channel growth capital and expertise to businesses with potential to expand and create jobs. Hassan said the investment aligns with Egypt's strategy to empower the private sector and with Vision 2030.

Yasmine Ghobrial, chief investment officer of the Egyptian-American Enterprise Fund, said EAEF is proud to continue its long-standing partnership with Tanmiya Capital. Ghobrial said the firm has consistently demonstrated an ability to invest in and build growing businesses in Egypt. She said the oversubscribed close is a strong signal of investor confidence.

Her fund's commitment reflects belief in the long-term fundamentals of the Egyptian economy and the central role of its private sector in growth and job creation, she said.

The operation follows a Team Europe approach and supports the EU-Africa Global Gateway Investment Package. It is expected to strengthen commercial links between Egypt and Europe. Portfolio companies may source equipment, technology and services from European suppliers or develop partnerships with European businesses. At target scale, Fund II is expected to support thousands of jobs across Egypt.

The commercial angle runs both ways. Egyptian portfolio companies can buy European equipment, technology and services, or form partnerships with European businesses, while the fund's backers hope the links deepen trade between the two regions.

The EIB will contribute experience in environmental, social and governance standards and international private equity best practice through participation in the fund's advisory committee.

The fund's size matters because long-term equity is scarce for Egyptian companies that have outgrown bank debt but are not ready for public markets. Development banks can reach those firms through local managers, but the model depends on deployment. A final close is a start, not proof that capital will find the right companies. Fund II's success will be judged by whether six to eight businesses can absorb capital, improve governance and add jobs in a market where such equity has been hard to raise.