The EAEF Mandate

The Egyptian-American Enterprise Fund will invest in private enterprises in Egypt contributing to long-term inclusive and sustainable economic growth. The Enterprise Fund will deploy capital on a profit-seeking basis, with due regard to societal benefits in Egypt.

The EAEF's Primary goals are:

job creation
improving quality of life
promoting financial inclusion

In addition, the EAEF will seek to attract foreign investors to Egypt and promote commercial best practices and improved corporate governance. The EAEF will encourage entrepreneurial activities and environmental accountability and favor investments that have a demonstrated positive effect on other Egyptian businesses.

Criteria for the EAEF’s Investments:

  • A need for growth capital or capital to restructure operations.
  • Investees’ primary country of operation must be Egypt.
  • Investee companies must meet one or more of the above-mentioned objectives.
  • Expectations for the profitability of both the company and the EAEF’s investment in it.

The EAEF Strategy:

  • The EAEF will target opportunities to which it can bring additional resources for the benefit of the investee. These benefits include additional public or private investors, technical assistance, management skills, and industry knowledge.
  • The EAEF will seek board representation in investee companies to add value.
  • The EAEF will seek minority stakes in investee companies. Controlling stakes will be considered if necessary to achieve benefits the EAEF brings to the investee as a value-adding shareholder.
  • The EAEF will target competitive market terms, but it retains the flexibility to forgo financial returns for positive social impact in order to achieve its dual bottom line.
  • The EAEF will not engage in competitive bidding and crowding out of other private investors prepared to finance an enterprise on reasonable terms, all other considerations being equal.
  • The EAEF will seek geographic and sectoral diversification of its portfolio in Egypt based on assessments of development priorities, periodic monitoring and evaluation of the portfolio.
  • The EAEF may appoint one or more investment management teams to identify and manage Fund investments.
  • The EAEF is a long-term investment partner and will seek to partner with investors, managers, and shareholders with objectives aligned to the EAEF’s mandate.

KEY FACTS

USD 300 mn

For Investments in Egypt announced by the US Government with the establishment of EAEF

5 Investments

In 3 major companies and 2 local funds

USD 87.8 mn

In total investments as of December 2016

USD 110 mn

In additional FDI attracted by EAEF’s investments

9

Board members with private sector experience supporting executive managers in Egypt

By investing in promising private Egyptian companies and not only providing them with capital but also technical expertise, management skills, industry knowledge, and a network of value creating investors, we hope to fuel a cycle of inclusive growth that will help spur the local economy and encourage domestic and international investments in Egypt.

EAEF Milestones

In 2013, US Congress established the Egyptian-American Enterprise Fund as a private corporation seeded with up to USD 300 million to promote development and reform of the Egyptian private sector. Over the course of four years, the Fund has stayed on track to fulfil its mission by investing in three promising companies and one local venture capital fund, with plans to support additional Egyptian-led funds and companies.

2011
may

The US State Department champions an initiative to establish the Egyptian-American Enterprise Fund and help restore the Egyptian economy.

2012
oct

James A. Harmon is appointed Chairman of the EAEF.

2013
Mar

US Congress authorizes the creation of the EAEF as a private corporation seeded with up to USD 300 million. The EAEF Grant Agreement is signed.

2015
Jun

The EAEF board selects Lorax Capital Partners as its primary investment advisor and asset manager.

2015
Jul

The EAEF leads a consortium of international investors to finance the first and largest exit of a fintech company, Fawry, for USD 100 million, including EAEF’s investment of USD 20 million.

2015
Nov

The EAEF acquires a majority stake in leading consumer finance company, Sarwa Capital. The investment included a USD 20 million capital injection.

2016
May

The EAEF makes its first investment in an early stage company by investing USD 1.2 million in the tech-healthcare startup SmartCare

2016
May

The EAEF announces its first investment in a venture capital fund, seeding the managers with USD 10 million to launch Algebra Ventures. The EAEF announces its plan to seed an SME-focused fund, TCV, with USD 10 million.

2016
Sep

The EAEF makes its first investment in an early stage company by investing USD 1.2 million in the tech-healthcare startup SmartCare