Moonbase Capital to launch Egyptian office as part of global expansion plan: Spain-based Egyptian-led investment firm Moonbase Capital plans to open an office in Egypt within the next six months as part of a broader global expansion strategy, Director Aly Abdel Baki told EnterpriseAM. The new Cairo team — starting with three analysts — will support Moonbase’s growing pipeline across MENA and Asia, Founding Partner had Ibrahim Abdel Rahim had earlier said.

But don’t expect local investments just yet: Despite Egypt’s long-term potential, Moonbase isn’t putting capital to work here in the near term. There are a few hurdles making the local market difficult to access, Abdel Baki said, pointing to the lack of accessible acquisition financing at reasonable rates from banks — critical for Moonbase’s search fund model — currency volatility, which complicates EUR investments, and the fact that target companies with EUR 1-5 mn in EBITDA (Moonbase’s sweetspot) often have large workforces in Egypt, complicating transitions and succession planning.

Founded in 2021, Moonbase is a search fund investment firm that specializes in SME acquisitions, according to its website. In October 2024, it launched its second USD 15 mn investment vehicle, with 40% earmarked for emerging markets like Saudi Arabia and the UAE.

SOUND SMART- Search funds are investment outfits that raise funds from investors to acquire a small- or medium-sized business that is already operating well in the market, to then grow it and ensure return to their investors. Through the acquisition, the CEO of the company is replaced with a seasoned entrepreneur to lead the company for a period of time until the fund exits the investment.

Looking ahead: Egypt could be a future opportunity, especially as the macroeconomic situation stabilizes, Abdel Baki said. Succession gaps in family businesses and growing awareness of the search fund model are two longer-term trends that could create viable opportunities, he added.

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