EFG Hermes’ Private Equity division is a regional leader that is dedicated to driving lucrative investments in strategic, high-demand sectors. With a robust track-record spanning two decades, the Private Equity division implements a specialized theme-centric approach to its investment methodology, investing in fast-growing businesses with untapped prospects. The division houses the industry’s most prominent professionals, investing in companies through their strategic insights and expertise. EFG Hermes’ Private Equity investment methodology strongly focuses on high-impact, responsible investments, funding companies operating in key sectors such as education, renewable energy, and healthcare. With global investors and financial markets increasingly becoming aware of the importance of environmental, social, and governance (ESG) criteria and a net-zero future, EFG Hermes’ Private Equity division continues to prioritize investments in sectors that not only generate financial returns, but also create massive impact. Being a pioneer in these verticals, EFG Hermes Private Equity has successfully fortified its expansive presence, consistently adding value to the industries across its footprint.

As such, the division manages its renewables investments through its Vortex Energy platform, which was established in 2014 to invest in projects in the rapid-growing renewable energy industry, driving higher sustainable development and laying the foundation for the transition towards clean energy. Since its inception, the investment platform has witnessed great success, completing the entire investment lifecycle from origination to divestment. In previous years, Vortex Energy divested Vortex I and Vortex II, which held a 49% stake in a 998 MW pan-European portfolio, encompassing 56 operational windfarms in Belgium, France, Portugal, and Spain. In 2020, the platform additionally divested its managing stake in Vortex Solar, a 100% shareholder of a 365 MW solar PV farm in the United Kingdom, which was later recognized as the winning EMEA Renewables and Energy Transition Solar Deal of the Year in the IJInvestor Awards in 2021.

EFG Hermes’ Egypt Education Fund (EEF) is a USD 150 million investment fund that was launched in 2018 in partnership with Dubai-based education provider GEMS Education. The education fund targets investments in Egypt’s K-12 private education sector, growing and developing Egypt’s underserved K-12 educational sector, in line with the Firm’s aim to make investments that are socially impactful across areas of strategic development in Egypt. Investments that fall under the fund’s umbrella include the acquisition of existing schools, greenfield developments, and building a vertically integrated platform with GEMS Education to best manage the platform assets’ operations. In 2019, the education platform concluded the acquisition of a majority stake in Option Travel, Egypt’s flagship transportation services provider, to enable the company to provide specialized buses that will center on the health and safety of students.

Rx Healthcare Management (RxHM), the Firm’s healthcare-focused investment management, was established to manage diverse investments across the healthcare sector to be able to meet the ever-growing demand for top-notch healthcare products and services across Egypt, the MENA region, and Africa. RxHM strongly focuses on investing in healthcare verticals with solid prospects, with an eye to unlock a plethora of compelling and accretive opportunities for investors. The Firm acquired a stake in Egypt’s leading medical solutions provider United Pharma, marking RxHM’s first investment in the pharmaceuticals landscape. The acquisition concluded through Special Purpose Vehicle (SPV) Nutritius Investment Holdings, was executed to cater to the substantial demand for medical solutions present in Egypt and the MENA region. Through the acquisition, RxHM aims to continue expanding United Pharma’s product offerings, providing healthcare solutions that create significant impact for the economy at large.

2021 was an exceptional year for Vortex Energy. During the year, the platform concluded the first close of USD 200 million for its fourth fund “Vortex Energy IV”, secured by EFG Hermes and several Abu Dhabi-based sovereign institutional investors. The fund, which is situated in the Abu Dhabi Global Markets (ADGM), will target a magnitude of energy transition verticals such as generation, storage, and electric vehicle charging facilities, among others. The fund’s scope encompasses products across the entire renewable energy spectrum, including plant operations, integrated product policies, development companies, greenfield developments, and commercial and industrial solutions. Vortex Energy IV’s geographical footprint is to span countries in Europe, North America, Latin America, and Australia.

Later in the year, Vortex Energy entered into a definite agreement with Ignis Energy Holdings, the holding company of the Spanish independent integrated renewable player Ignis Group. Through this agreement, Vortex Energy is expected to inject over EUR 625 million through its Vortex Energy IV Fund, which will enable Ignis to best finance its operation expansion plans.

2021 saw RxHM work towards growing and enhancing the operations of its healthcare platform with United Pharma. The company’s product offering encompasses a vast range of generic categories specifically catering to underserved therapeutic areas, as well as intravenous (IV) solutions. RxHM substantially expanded the platform throughout the year, sourcing a larger number of products to add to its portfolio, and expanding its regional footprint through higher exports to various countries. Medical products and services continue to witness increasing demand in regional markets, and the division aims to explore further prospects to push forward its platform expansion.

In 2021, the education platform began diversifying its portfolio of investments to house reputable institutions in the region, with an eye to expand and enhance its activities in the education sector. At present, the platform’s portfolio consists of ten schools at various stages of development with a combined capacity of c.20,000 students , offering superior education to more than 9,000 students currently enrolled. One of the major milestones for EFG Hermes’ education platform for the year included the addition of Al Hayah International Academy to the platform, one of Egypt’s premium education providers. The school follows a one-of-a-kind, value-based education approach, and joined the Egypt Education Fund Platform in an integration that brings together Al Hayah’s extensive expertise and the platform’s solid track record of immense success.

Revenues for the division in 2021 recorded EGP 109 million.

In 2022, the EFG Hermes Private Equity division plans to continue broadening its investment scope to take on more investments that create meaningful impact across its footprint providing a comprehensive suite of offerings that add sustainable value to investors, other stakeholders, and economies as a whole. Shedding light on EFG Hermes’ renewables platform, Vortex Energy, 2022 will see the Firm invest heavily in renewable energy in collaboration with Ignis, funding the company’s future growth plans in its domestic market Spain, and internationally. As the global focus on decarbonizing the environment continues to grow, Vortex Energy continues to work towards ensuring its renewables platform follows the highest sustainability and ESG standards with an eye to significantly reduce carbon emissions. On the educational front, Egypt Education Fund aims to leverage its investment in Hayah International Academy, as the institution embarks on a journey to launch its first branch in the West of Cairo. The new branch is set to commence operations in 2022. Additionally, the education platform also aims to diversify its service offerings beyond the K-12 sector, as it is in the process of exploring opportunities to invest in nurseries, Ed-tech, and other ancillary services. On the healthcare front, RxHM plans to continue expanding its healthcare portfolio by adding more acquisitions to the platform in collaboration with United Pharma.