The MENA Long Term Value Fund (LTV) has joined a consortium of investors to acquire a majority stake in Egypt’s e-payment services platform, Fawry, valuing the company at EGP773m ($98.72m).

Members of the acquiring consortium include the Egyptian-American Enterprise Fund, the International Financial Corporation and Helios Investment Partners.

Moataz El-Etreby, who leads the MENA LTV team as Managing Director and Portfolio Manager, said: “Fawry is far more than the distinctive branding and colours we see in stores and on streets nationwide: it is a platform that owns its own secure, global-standard technology and that can be rolled out to bilingual markets around the world.”

“It is an Egyptian success story in the making — one we are delighted to be part of today alongside such a high-quality group of international investors,” he said.

EFG Hermes and Wellcome Trust formed a partnership in 2010 to invest in public and private long-term opportunities in the Middle East and North Africa (MENA) region, with EFG Hermes acting as the Fund’s dedicated investment manager.

The $450m vehicle is the first of its kind in the region, with a hybrid public- and private-equity investing style seeking concentrated, long-term investment opportunities in the region’s best-in-class companies.

“The Fund has been structured to capitalise on the region’s secular growth story. It invests in domestically driven opportunities that provide exposure to the compelling demographics and that are operating in sectors with low penetration levels,” El-Etreby said.

Headquartered in Cairo, Fawry provides users with a secure electronic bill payment services solution, connecting consumers, merchants, governments and financial institutions on a consolidated gateway that is accessible through multiple channels, including point-of-sale machines, ATMs, post offices, online and through mobile wallets.

“Fawry is a home-grown, scalable business, the kind that MENA LTV looks for as a long-term investor.” El-Etreby added.

This transaction is MENA LTV’s third high-profile private investment in Egypt.

MENA LTV’s most recent investments in Egypt include the acquisition of a 15% stake in Wadi Degla, Egypt’s first private company specialized in building and operating private leisure / sports clubs, as well as a 46% stake in Tawfeer Ventures, a Kazyon-branded, hard-discount, mass-grocery retail chain.

Amr Seif, Head of Asset Management at EFG Hermes, said: “The MENA LTV Fund continues to make compelling private investments, calling on the unique mix of local-market expertise and global experience of our team of asset management professionals.”

“The Fund is on track to generate USD IRR in excess of 30% on its first private investment, with similar targets for the Fund’s subsequent investments,” he said.