Wednesday, March 20, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > Deals

EFG Hermes's K-12 education vehicle makes first investment

Anna Lyudvig
June 15, 2018, 12:19 p.m.

Word count: 379

EFG Hermes’s Private Equity Division’s K-12 education vehicle has entered into definite agreements with TMG to acquire a portfolio of schools in an EGP1bn investment. 

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EFG Hermes’s Private Equity Division’s K-12 education vehicle has entered into definite agreements with TMG to acquire a portfolio of schools in an EGP1bn investment. 

“I am pleased to announce our platform’s first investment in the Egyptian education market with the acquisition of one of Egypt’s largest student bodies,” said Karim Moussa, Head of Asset Management and Private Equity at EFG Hermes. 

“We will capitalise on the top-tier facilities developed by TMG in the four schools alongside our exclusive partnership with GEMS Education to offer the residents of Madinaty and Al Rehab a world-class educational service,” he said. 
EFG Hermes will finance the equity component of this transaction on its own balance sheet under its merchant banking strategy.
GEMS Education, one of the world’s leading providers of private English-language education for students from kindergarten to twelfth grade (K-12), and EFG Hermes’ exclusive education partner in Egypt, will take over the operatorship and management of the four schools.
“GEMS Education is committed to providing quality education throughout our network of schools. This Joint Venture allows us to bring more than 50 years of educational excellence to Egypt. Students will be able to benefit from our global experience, coupled with access to an extensive network which offers multiple opportunities for the future,” said Dino Varkey, CEO at GEMS Education.

In late May, EFG Hermes, via its private equity arm, and GEMS Education​, have established a new platform focused on Egypt’s K-12 education sector worth $300m.

In connection with the JV, EFG Hermes has ​established an investment vehicle managed by its private equity division to fund the planned investments alongside GEMS Education. 

The JV benefits from the combination of EFG Hermes’ investment track record in Egypt, together with GEMS Education’s operational expertise in the global K-12 sector.

“Our 50/50 joint venture with GEMS Education will offer our investors unique access to Egypt - MENA’s largest education market with over 20 million enrolled students. We see a substantial opportunity to create value while making a sustainable social impact on future generations,” commented Moussa.

“We will target replicating GEMS Education’s success in the United Arab Emirates and elsewhere, introducing the international education standards that GEMS Education delivers, to a highly underserved education sector in Egypt,” he added.

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