SPE PEF III LP (FMO-63043)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 27, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 350.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Aug 11, 2024

Disclosed by Bank Jan 17, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, FMO's commitment aims to support the SPE PEF III Fund in achieving its first close in a challenging fundraising environment and attract new commercial investors in subsequent funding rounds. By partnering with SPE, FMO aims to support a seasoned and experienced private equity fund manager who has been on the ground and investing in African PE for over a decade. SPE will work with portfolio companies to improve competitiveness and create sustainable value, thereby contributing to the resilience of financial markets and the development of private equity as a viable funding source in Africa.

SPE's approach towards investments is to add value and grow the companies responsibly and efficiently, which aligns well with FMO's commercial and impact objectives. SPE's senior investment team is present in key markets, and its in-house ESG and impact team uses a proprietary impact management system to support portfolio companies in meeting ESG standards and achieving positive multi-dimensional impact. As a signatory to the Operating Principles for Impact Management (OPIM), SPE further underscores its commitment to responsible investing. SPE has also developed a robust gender strategy, reinforcing its commitment to promoting gender diversity and supporting the economic participation of women in its markets.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

SPE PEF III is categorised as B+ fund, considering the E&S risk profile of the currently identified pipeline companies and their investment mandate. The pipeline companies are predominantly in the manufacturing, services, healthcare, and education sectors, for which the former (manufacturing) has some higher risk in relation to occupational health and safety and potentially pollution related aspects. Other sectors have predominant risk for adverse labour and working conditions, resulting in the likelihood that the pipeline companies trigger IFC PS1-4 related risks. The Fund has the mandate to invest in Category A projects, although the likelihood given the pipeline and their ambition is considered low. Organisational capacity on E&S and their Environmental and Social Management System (ESMS) are considered of good quality.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Funding: FMO NV

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

SPE PEF III ("the Fund") is a USD 350m sector-agnostic, North Africa focused, private equity fund managed by SPE Capital ("Fund Manager" or "SPE"), which was formed in 2016 as a spin-off from a MENA-focused investment bank. The Fund will pursue control-oriented growth stage equity and equity-related investments in mid-cap companies, primarily in Egypt, Morocco and Tunisia, with the objective of achieving long-term capital growth. Opportunistic investments in Sub-Saharan Africa (SSA) will be capped at 25% of total commitments.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Website customer/investment: https://spe-capital.com/

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works