Tanmiya Capital Closes $130M Fund II, Exceeding Target with EIB Backing

EIB Vice-President Gelsomina Vigliotti and Tanmiya Capital Ventures Managing Partner Ahmed El Guindy

Tanmiya Capital reached a $130 million final close for its Fund II, anchored by a $37.5 million capital injection from the European Investment Bank (EIB).

The vehicle exceeded its $120 million target with institutional backing from the IFC, EBRD, EAEF, and MSMEDA. The fund will execute concentrated equity investments across a highly selective portfolio of six to eight established Egyptian SMEs operating in logistics, healthcare, and financial technology.

How Did Tanmiya Capital Fund II Reach Its US$130M Final Close?

Tanmiya Capital Fund II has reached a final close of US$130 million, surpassing its original US$120 million target following a US$37.5 million commitment from the European Investment Bank (EIB), through its development arm, EIB Global.

The investment was announced at a ceremony in Cairo attended by EIB Vice-President Gelsomina Vigliotti and Tanmiya Capital Ventures Managing Partners Ahmed El Guindy, Youssef Ahmed Ayoub and Mohamed Mohsen Mahgoub.

The fund is managed by Tanmiya Capital, an independent Egyptian investment firm, and is designed to provide growth capital to established small and medium-sized enterprises (SMEs) across Egypt. Its final close reflects support from a group of international and domestic institutional investors, including:

• European Investment Bank (EIB), through EIB Global
• Egyptian-American Enterprise Fund (EAEF)
• European Bank for Reconstruction and Development (EBRD)
• International Finance Corporation (IFC)
• Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA)

With US$130 million raised against a US$120 million target, the fund closed approximately 8.3% above its original fundraising goal.

Which Egyptian Businesses Will Tanmiya Capital Fund II Invest In?

Tanmiya Capital Fund II will target established, high-growth Egyptian companies that need strategic capital to expand, professionalise their operations and strengthen their market position.

The fund expects to invest across six sectors:

Target sector	Investment focus
Healthcare	Businesses addressing demand for healthcare services
Training	Companies developing education and professional training capabilities
Financial technology	Fintech businesses expanding financial products and services
Consumer goods	Established consumer-focused companies with growth potential
Logistics	Businesses strengthening supply chains and distribution
Transport	Companies supporting mobility and transport services

The fund is expected to build a portfolio of six to eight companies. Beyond providing financing, Tanmiya Capital intends to support portfolio businesses with strategic and managerial expertise to help them scale, improve governance and become more competitive.

This approach is particularly relevant for established SMEs seeking long-term equity capital to fund expansion without relying exclusively on debt financing.

Why Is the EIB Investing in Egypt's SME Sector?

The EIB's US$37.5 million commitment addresses a financing gap facing Egyptian SMEs: limited access to long-term equity capital that can support business expansion and operational development.

By investing through a locally managed private equity fund, EIB Global aims to channel institutional capital into businesses with the potential to grow, create employment and strengthen Egypt's private sector.

The investment also includes a gender-equality objective. At least 30% of portfolio companies are expected to meet one or more of the EIB's criteria for financing that supports gender equality.

EIB Vice-President Gelsomina Vigliotti said the investment would provide ambitious Egyptian businesses with growth capital and expertise, while supporting the country's competitiveness and economic resilience.

The EIB will also contribute its experience in environmental, social and governance (ESG) standards and international private equity practices through its participation in the fund's advisory committee.

How Does the Fund Support Egypt's Economic and Employment Goals?

Tanmiya Capital Fund II is expected to support thousands of jobs across Egypt through investments in six to eight companies.

Its objectives extend beyond financing individual businesses. By helping portfolio companies improve governance, professionalise management and expand their operations, the fund aims to strengthen the wider SME ecosystem.

The investment also aligns with Egypt Vision 2030, which emphasises private-sector development and sustainable economic growth. MSMEDA's participation reflects its Fund of Funds programme, which works with experienced private equity and venture capital managers to attract private and international investment into Egyptian businesses.

Mostafa Ismail Hassan, CEO of MSMEDA, said the agency's investment reinforces its mandate to crowd in private and international capital through partnerships with established and emerging fund managers.

What Role Does the Fund Play in Strengthening Egypt-Europe Business Ties?

The EIB investment follows a Team Europe approach and supports the European Union's Global Gateway Investment Package.

It is also aligned with the EU's new Agenda for the Mediterranean, which aims to strengthen economic cooperation and support a more competitive and resilient regional economy.

The fund could create additional commercial opportunities between Egyptian portfolio companies and European businesses. As companies expand, they may source equipment, technology and services from European suppliers or establish partnerships with European firms.

For the EIB, the investment therefore serves two objectives: expanding access to growth capital for Egyptian SMEs and strengthening economic connections between Egypt and Europe.

What Does Tanmiya Capital Fund II Mean for Egypt's Private Equity Market?

The fund's US$130 million final close, exceeding its US$120 million target, demonstrates institutional investor interest in Egypt's established businesses and their growth potential.

Its investment strategy also highlights the role of private equity in financing companies that have moved beyond the early-stage startup phase but still require capital and operational support to scale.

For Egyptian SMEs, the fund offers more than financing. Its combination of equity investment, managerial expertise, governance support and international connections could help portfolio companies build stronger foundations for long-term growth.

As Tanmiya Capital deploys the fund across its planned six to eight investments, its progress will provide a further indication of how institutional private equity can support business expansion and employment in Egypt.