Mediterrania Capital IV (MC IV) has recently received additional support from DEG, the German development finance institution, with an increased investment of EUR 15 million (USD 16.2 million). This brings DEG’s total investment in the private equity fund to EUR 25 million (USD 27 million), highlighting its confidence in MC IV’s ability to drive economic growth, support local businesses, and create employment opportunities in North and West Africa.
Managed by Mediterrania Capital Partners, MC IV focuses on investing in mid-sized companies with high growth potential in key sectors such as healthcare, logistics, consumer goods, education, and financial services. The fund’s strategy involves acquiring minority stakes in established businesses, providing them with capital and strategic expertise to expand operations and enter new markets. With plans to invest in 8 to 10 companies, each receiving between EUR 20 million (USD 21.6 million) and EUR 50 million (USD 54 million), MC IV aims to foster sustainable long-term growth in the region.
DEG’s partnership with MC IV began in May 2023 during a EUR 75 million (USD 81 million) fundraising round, which facilitated the acquisition of Laprophan, a prominent Moroccan pharmaceutical company. Other development finance institutions, including FMO and Proparco, also participated in this fundraising round. Since then, MC IV has made strategic investments in companies like Cash Plus, a leading Moroccan fintech company, demonstrating its commitment to supporting businesses that contribute to economic and social development.
In addition to providing capital, DEG supports MC IV’s portfolio companies through its advisory initiative, DEG Impulse, offering business support services to enhance operational efficiency, reduce emissions, adopt renewable energy solutions, and improve sustainability practices. MC IV is also a 2X Challenge fund, promoting gender equality by empowering women in leadership roles and the workforce, with gender diversity integrated into its investment strategy.
For Mediterrania Capital Partners, DEG’s increased investment is a testament to its strategy and execution capabilities. With the additional capital, MC IV is well-positioned to expand its portfolio and further influence the African private equity landscape. As the fund continues to deploy capital and scale its investments, its progress will serve as a benchmark for how private equity can drive Africa’s economic growth in the future. Stay ahead with TechInAfrica for the latest updates on tech, startups, and venture capital across Africa! Join our WhatsApp Channel for news from Cairo to Cape Town, Lagos to Nairobi, covering all 54 countries. Subscribe now to be the first to know and stay informed.
