Moonbase Capital Launches $15M Search Fund Targeting Emerging Markets

Moonbase Capital, an Egyptian-led investment firm based in Spain, has launched a $15 million search fund investment vehicle, aimed at emerging markets such as Saudi Arabia and the UAE.

The firm plans to allocate 40% of the fund's capital to search funds in developing regions, including Latin America, Southeast Asia, and the Middle East. This initiative seeks to support the acquisition and growth of well-performing small and medium-sized enterprises (SMEs) in these regions.

Search funds typically raise capital to acquire established SMEs, replace the current CEO with an experienced entrepreneur, and expand the company with the goal of a future exit. Moonbase Capital's latest fund follows the success of its first $10 million fund, which supported 35 searchers, primarily across Europe.

The new fund is expected to take 10% to 15% stakes in around 15 companies, with an average investment of €1.25 million per company. Moonbase Capital is targeting exits within four to five years, focusing on asset-light, cash-rich SMEs with high profitability, low customer concentration, and recurring revenue, especially within B2B services.

Although Egypt is not currently a target market, searchers are actively scouting for investment opportunities in Saudi Arabia and the UAE as part of this new fund's strategy.