– Moonbase Capital launches its second USD 15 million fund, focusing on emerging markets like Saudi Arabia and the UAE, with 40% of funds allocated to these regions.

– The fund targets scalable SMEs, aiming for 10-15% stakes with an average investment of EUR 1.25 million, focused on high-profit, asset-light, and cash-rich companies.

– Building on its first USD 10 million fund, Moonbase plans to expand into Latin America, Southeast Asia, and the Middle East, with a continued focus on promising B2B service models.

Egyptian-led, Spain-based search fund investment firm Moonbase Capital has announced the launch of its second USD 15 million investment vehicle, according to a press release. Approximately 40% of the funds will be allocated to search funds in emerging markets, including Saudi Arabia and the UAE.

Search funds raise capital to acquire well-performing small- or medium-sized businesses (SMEs) with growth potential. After acquisition, the company’s CEO is replaced by an experienced entrepreneur to lead the business until the fund exits. Moonbase Capital focuses on search funds that find scalable SMEs to provide solid returns for investors.

“The company is targeting bigger ticket sizes and a more global reach this time around.”

Building on the success of its first USD 10 million fund, which supported 35 searchers mainly in Europe, Moonbase is now targeting larger investments and expanding into emerging markets with promising returns, according to Managing Partner Tarek El Gammal.

The new fund will invest in 10-15% stakes, with an average ticket size of EUR 1.25 million, across roughly 15 companies over a 3-4 year period, aiming to exit within 4-5 years. The focus is on cash-rich, asset-light SMEs with high profitability, low customer concentration, and recurring revenue, often found in B2B service models.

In addition to Europe, Moonbase plans to allocate around 40% of the USD 15 million to markets in Latin America, Southeast Asia, and the Middle East. While Egypt is not yet a target, searchers are actively exploring opportunities in Saudi Arabia and the UAE, El Gammal added.

The fund is led by an entirely Egyptian team, including Managing Partners Tarek El Gammal and Tamer El Bahay, both veterans in the Egyptian and regional SME sectors. “We’ve all operated SMEs in developing markets, which sets us apart from many other search fund investors,” El Gammal noted.