EIB check takes TCV’s second fund to a USD 130 mn close

Tanmiya Capital Ventures (TCV) has around USD 80 mn to put into local mid-caps over the coming two to three years, Managing Partner Mohamed Mahgoub LinkedIn tells EnterpriseAM, after the firm closed its second fund above target in June. Fund II closed at USD 130 mn, USD 10 mn past its USD 120 mn goal, building on a USD 97 mn first close in December 2024, Mahgoub says. The European Investment Bank (EIB) wrote the closing check, approving up to USD 37.5 mn for the vehicle, a quarter of its USD 150 mn hard cap, and has invested USD 32.5 mn of it, Mahgoub tells us.

The EIB is hoping for some European business in return. It pitches the investment as part of the bloc’s Global Gateway package and the new Agenda for the Mediterranean. Portfolio companies may end up sourcing equipment, technology, and services from European suppliers or building partnerships with European businesses, the EIB says.

The cap table is entirely development finance. Alongside the EIB’s USD 37.5 mn, Fund II’s backers are the Egyptian-American Enterprise Fund (USD 50 mn), the European Bank for Reconstruction and Development (USD 20 mn), the International Finance Corporation (up to USD 20 mn), and the state’s Micro, Small and Medium Enterprise Development Agency (USD 2.5 mn).

The EIB expects the fund to end up with six to eight companies across healthcare, training, fintech, consumer goods, and logistics and transport, with at least 30% of portfolio companies meeting one or more of the EIB’s gender-finance criteria. The fund has backed pharma manufacturer Copad and El Abd Patisserie so far, Mahgoub says.

TCV is looking for the door on both of its Fund II assets. Mahgoub told us in March that plans to list portfolio company Copad Pharma were on track for a 4Q IPO, with EFG Hermes quarterbacking the transaction and timing hanging on markets showing a clear recovery or investors “getting used to the war” with Iran. Copad CEO Ahmed Hosny has since said the listing could slip to 1Q 2027 and that the offering would be largely secondary, with a 20-30% float, giving TCV, which holds 21%, its exit. As for El Abd, Mahgoub said at a forum in February that the confectionery player could look to the EGX as an exit route as soon as next year.

GO DEEPER- Development finance already takes up too much of the money going into local private equity, Mahgoub warned in a February Spotlight interview. “IFI investment should be a catalyst [...] it cannot be the vast majority,” he said, arguing Egypt’s private equity market won’t mature until local pension funds and insurers start committing to domestic funds.