Private Equity Powerhouse MC IV Gains USD 16.2 M More From German DFI DEG

Mediterrania Capital IV (MC IV), a private equity fund focused on North and West Africa, has gained fresh backing from German development finance institution DEG, which has increased its investment by an additional EUR 15 M (USD 16.2 M).

This new capital injection brings DEG’s total stake in the fund to EUR 25 M (USD 27 M), reinforcing its confidence in MC IV’s ability to foster economic growth, support local businesses, and create jobs in some of the continent’s fastest-growing sectors.

Since its launch, MC IV, which is managed by private equity firm Mediterrania Capital Partners, has focused on investing in mid-sized companies with strong growth potential, targeting sectors essential to the region’s economic transformation. These include healthcare, logistics, fast-moving consumer goods, education, and financial services—industries that are not only vital for development but also offer significant investment opportunities.

The fund’s approach is to acquire minority stakes in well-established businesses, providing them with both capital and strategic expertise to scale operations and expand into new markets. With plans to invest in 8 to 10 companies, each receiving between EUR 20M (USD 21.6 M) and EUR 50M (USD 54 M), MC IV aims to drive long-term, sustainable growth. Approximately 75% of the fund’s capital is allocated to North Africa, while 25% is directed toward Sub-Saharan Africa, ensuring a broad yet focused regional impact.

DEG’s relationship with MC IV dates back to May 2023, when it participated in a EUR 75 M (USD 81 M) fundraising round that played a key role in financing the acquisition of Laprophan, a leading Moroccan pharmaceutical company. That round also attracted other major development finance institutions (DFIs), including FMO, the Dutch entrepreneurial development bank, and Proparco, the French Development Agency’s private sector arm.

Since then, MC IV has moved quickly to build its portfolio and has made strategic investments that reflect its commitment to driving growth in the region. Beyond its stake in Laprophan, the fund invested in Cash Plus, a leading Moroccan fintech company, in October 2023. These investments highlight MC IV’s ability to identify and support businesses that not only show strong financial prospects but also contribute meaningfully to the economic and social fabric of their markets.

Beyond capital investment, DEG plays an active role in strengthening MC IV’s portfolio companies through DEG Impulse, its dedicated advisory initiative. By providing business support services, DEG helps these companies improve operational efficiency, reduce CO₂ emissions, integrate renewable energy solutions, and enhance sustainability practices. The goal is not just to generate financial returns but to ensure that businesses operate responsibly and contribute to the region’s long-term stability.

MC IV is also a 2X Challenge fund, meaning it actively promotes gender equality by supporting businesses that empower women in leadership and the workforce. As part of this initiative, the fund implements targeted measures to ensure that gender diversity is not just an afterthought but a core part of its investment philosophy.

For Mediterrania Capital Partners, DEG’s increased investment represents a strong vote of confidence in its strategy and execution capabilities. With additional capital at its disposal, MC IV is well-positioned to expand its portfolio and deepen its impact on the African private equity landscape.

As the fund continues to deploy capital and scale its investments, its progress will be closely watched. With rising interest in African markets and a growing recognition of the region’s potential, MC IV’s success will serve as a measure of how private equity can help shape the next phase of Africa’s economic growth.