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FEMIP: EIB and Société Générale
join forces into private equity in the Mediterranean
Region through the Kantara Fund
Under its Facility for Euro-Mediterranean Investment and
Partnership (FEMIP), the European Investment Bank (EIB)
is joining forces with the Group Société Générale (SG
group), through its asset management subsidiary Société
Générale Asset Management (SGAM) for private equity
support in the Mediterranean region. The EIB is
participating to the tune of EUR 10 million to the SGAM
Al Kantara Fund (Kantara Fund). The EIB is a significant
partner of the initiative, as along its financial
support, the Bank has been instrumental also in
structuring the Kantara fund.
This multi-sector private equity investment fund is
targeting private companies operating in selected
Mediterranean Partner Countries (Morocco, Tunisia,
Algeria, Egypt, Lebanon and Jordan).
The Kantara Fund, which will
ultimately reach a size of some EUR 120 million, is the
first move of a major and experienced European asset
manager in the Mediterranean area.
It will seek to generate capital appreciation by
investing in equity or equity related securities in a
portfolio of investments diversified across countries
and sectors, mainly targeting medium to large sized
companies with growth potential. The Fund’s investments
will also provide additional capital to finance
companies’ expansion and/or enable buyouts of existing
shareholders. This will is tailored to address in a
suitable way, the needs of family businesses facing
generational issues and strengthen the investees’
management.
In addition to its loans and
technical assistance grants, FEMIP encourages the
development of the private sector by acquiring equity
and quasi-equity stakes in private companies in order to
help Mediterranean Partner Countries speed up their
economic and social modernisation, in particular through
increased regional integration. These FEMIP activities
are financed from the European Community budget (EUR 200
million over the period 2001-2006) and by the FEMIP
Trust Fund, which was set up in December 2004 (EUR 33.5
million). |