MPEF III is sponsored by Tuninvest-Africinvest, an independent private equity fund manager operating in north and sub Saharan Africa. Tuninvest was founded in 1994 with an initial focus on investments in Tunisia. Tuninvest is owned by its employees and the French capital development company Siparex. From 1994 to 2010, the Tuninvest private equity team - currently made up of 35 investment professionals present across six main offices in Tunis, Algiers, Casablanca, Lagos, Nairobi and Abidjan - has made 87 investments in SMEs through its prior funds and realized 41 exits.

IFC’s proposed investment will be an equity commitment of EUR 15 million, but not to exceed 20% of total commitments in MPEF III.

21.71 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	21.71

* These investment figures are indicative

The Fund will be registered and licensed in Mauritius and will have local teams in Tunisia, Morocco, and Algeria.

The proposed Project is expected to have a high development impact as: (i) the Fund will target SMEs with clear growth prospects that can increase job creation, (ii) the Manager will adopt best practices for transparency and corporate governance of its investee companies, thus fostering knowledge and skills transfer, and (iii) the Manager will employ a hands-on value added strategy to help portfolio companies improve operational efficiency and competitiveness.

IFC’s participation in the first closing will help MPEF III reach a critical size to attract commercial investors in subsequent closings. Furthermore, IFC presence and knowledge in North Africa gives IFC a unique position to provide lessons on experience that other investors can not readily provide.

This project has been classified as a Category "FI" project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the Fund''s pipeline, for types of transactions, size, and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the Fund''s pipeline. Considering IFC’s investment, the Applicable Performance Requirements are:
- The IFC FI Exclusion List;
- The applicable National Social and Environmental Laws and regulations; and
- The IFC Performance Standards. 

IFC also reviewed the Fund''s existing Social & Environmental due diligence process and the current Social and Environmental Management System (SEMS). Based on the Applicable Performance Requirements and the SEMS capacity review, the project will be required to:
- Upgrade, as a condition of IFC commitment, the SEMS to outlines screening against the Applicable Performance Requirements to the satisfaction of IFC;
- ensure continuous appointment of a qualified person(s) to manage and implement the SEMS and notify IFC in case the appointed person is replaced;
- commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements;
- take action to remedy any gaps in SEMS implementation on an going basis; and
- submit a periodic report to IFC as per a format to be provided by IFC. 

IFC will review the implementation and performance of the Fund''s SEMS for the first few projects; prior to the Fund''s investment, to ensure that the SEMS functions properly. The Fund will also notify IFC for any investment in Category "A" project.