MEDU III INTERNATIONAL PARTNERSHIP.
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Medu Capital Fund III is a private equity fund with a multi-sector mid-market strategy in South Africa. The fund has a target fund size of USD 225 million and will make investments of USD 7-50 million in medium-sized businesses. The fund will be managed by Medu Capital, a professional investment management company with a focus on private equity. Its principal activities include sourcing and evaluation of investment opportunities, execution of investments, active involvement and realization of investments.
What is our funding objective?
Medu Capital Fund III will be a generalist fund. It will maintain the focus on mid-market companies, with enterprise value of the target companies ranging from USD 10 million to USD 130 million. The fund manager invests with a view to increase the earnings of portfolio companies, and play an active role in the boards of portfolio companies. Beyond strategic advice, business operations will be improved through value-enhancing environmental, social and governance initiatives, including Black Economic Empowerment.
Why do we fund this investment?
FMO believes that the investment in Medu Capital Fund III will enable this fund manager to further strengthen its position as a solid and renowned player in the mid-market sector. Medu Capital Fund III will play an important role in providing equity financing to companies with high potential but limited access to capital. Medu’s BEE investments in particular will have a significant impact, not only on local companies, but on previously disadvantaged individuals and communities as well. The much needed equity will enable Medu’s investment companies to scale up and, with the right amount of investment and support, have an important impact on the local underserved economy.
- Region
- Africa
- Country
- South Africa
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 9/20/2013
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B