Specialist investor attracts new LP

A Specialist investor, Algebra Ventures is set to receive commitment to its early-stage vehicle, from a UK-based investor.

British International Investment (BII) is working on plans to commit an undisclosed amount to Algebra Ventures Fund II, which is targeting $90 million at final close.

BII is committing to the vehicle as part of its plan to invest up to $100 million early stage deals across Egypt.

Netherlands-based FMO is also an LP in Fund II, having commited $10 million to the fund earlier in 2022.

FMO is structured the commitment through FMO Ventures Program, an approximately $204 million (€200 million) early-stage investment platform created in 2019 to back funds and direct deals across Africa, Europe and Asia.

Karim Hussein [pictured] is managing partner at Algebra.

Tarek Assaad is managing partner at Algebra Ventures.

Laila Hassan is general partner at Algebra Ventures.

Clarisa De Franco is managing director and head of private equity funds at BII.

The target size of the latest vehicle is about 67% larger than the $54 million raised for its preceding vehicle.

Algebra Ventures’s maiden fund beat its target by 8%, after originally setting out to raise $50 million at final close.

The investor has backed 21 deals from its maiden, Algebra Ventures Fund I, closed at $54 million in 2017. Deals from the fund include backing an Egypt-based business services technology company, Dsquares & Lucky (DSQ), in 2020.

The second fund, Algebra Ventures Fund II is domiciled in Domiciled in Netherlands.

Ventures Fund II is structured as an LP-GP venture capital fund with a 10-year lifespan.

The latest fund follows in the footsteps of its predecessor, looking to back technology companies, across the Middle East and North Africa (MENA) region.

Algebra Ventures Fund II is expected to invest a significant amount of its capital in Egypt.

The vehicle will primarily target technology companies operating in the financial services, agriculture, education, logistics and healthcare sectors.

Algebra Ventures Fund II has been set up with a co-investment facility.

Deal sizes will range between $0.5 million and $1 million per transaction.

Tarek Assaad and Karim Hussein are managing partners at Algebra Ventures.