Beirut-based Capital Trust Group (CTG) is launching EuroMena III, its fourth private equity fund. The company’s goal is to raise $150-$200 million for the new fund.
EuroMena III will invest in private companies which operate in high-growth industries and have the potential to become leading regional groups. The size of investment in each company will be in the range of $10-$30 million. “The Fund will also seek to guide and assist the management of the companies in its portfolio in formulating their growth strategies and executing their expansion plans,” said Romen Mathieu, Managing Director of the EuroMena funds.
The fund will follow a diversified investment strategy in terms of sectors and countries. It will target companies in the agriculture, education, energy, financial services and insurance, food and beverages, healthcare and pharmaceuticals, cosmetics, information technology, retail, and consumer products sectors. Similar to its predecessors, the fund will not invest in real estate or in startups.
The first closing of the fund is this month. “We succeeded to fundraise over $100 million for the first closing based on our good track record and experience,” he said. The second closing is expected to take place by year-end.
Several international investors have committed to the fund such as the European Investment Bank (EIB), the International Finance Corporation (IFC), the German Investment and Development Corporation (DEG), the French Proparco, and the Caisse des Dépôts et Consignations (CDC), for a combined amount of $75 million.
“The biggest share is provided by the EIB with an amount of $26 million. It is participating for the third time since we launched our funds,” said Mathieu. “The presence of important partners elevates the credibility of these funds,” he said.
The minimum commitment to the EuroMena III is $2 million for corporate and institutional investors, and $500,000 for individuals. The fund life is seven to ten years.
Since 2005, the team successfully raised around $170 million (EuroMena I & II) from more than 45 private investors from the Gulf and the Levant regions, and from public or semi public European institutions.
EuroMena I has been fully invested during its investment period and successfully exited four investments, generating two times invested capital. It is currently in the process of exiting two additional portfolio companies with similar expected levels of return. This fund has been invested in nine portfolio companies. EuroMena II has been invested in six companies.