Moonbase Capital Launches $15M Global Search Fund

Moonbase Capital, a leading search fund investment firm, has announced the launch of its second investment vehicle. This new initiative aims to support talented entrepreneurs in acquiring and scaling small to medium-sized enterprises (SMEs) across global markets.

Scope and Structure of the $15 Million Investment Fund

The new $15 million investment vehicle will be led by Moonbase Capital’s expanded leadership team, featuring Tamer El Bahay and Tarek El Gammal. Both bring extensive operations, finance, and investment expertise across diverse industries. This initiative builds on Moonbase Capital’s successful track record since 2020, significantly broadening the firm’s global presence.

Ibrahim Abdel Rahim, Founding Partner of Moonbase Capital, stated, "We're excited to launch our second vehicle, targeting larger investments and supporting bigger deals than our first. With an expanded team and increased capital, we're well-positioned to back the next generation of global search fund talent."

Tamer El Bahay added, "Search funds represent an exciting asset class that enables talented operators to become entrepreneurs through acquisition. We're eager to leverage our experience and networks to support searchers in identifying, acquiring, and boosting already successful businesses to the next level.”

Tarek El Gammal added, "The appeal of search fund investing lies in its blend of venture capital's high returns with private equity's lower risk profile. With 60% of our investments in Europe and 40% in high-growth developing economies, our new vehicle is poised to deliver strong portfolio diversification and attractive returns."

The firm’s first $10 million investment vehicle funded 35 searchers, primarily in Europe, along with a few international investments. In contrast, the new vehicle will explore wider opportunities across Latin America, Southeast Asia, and the Middle East. The goal is to invest in around 15 SMEs over a 3-4 year period.

Fundraising Timeline and Key Investors

Moonbase Capital anticipates the first closing of the new fund by Q1 2025. The capital will be primarily sourced from family offices and high-net-worth individuals, focusing on networks in Europe, Egypt, and the Gulf region.

Profile of Tamer El Bahay

Tamer El Bahay, an influential Egyptian entrepreneur with over 17 years of experience, specializes in the food sector. He has held CEO roles for more than a decade and successfully managed two high-profile business exits. One of these exits involved selling his family’s food business—holding 85% of the local market share—to Kellogg’s for $50 million in 2015. More recently, he exited a frozen bakery venture, acquired by Edita Food Industries in 2023.

Currently, Tamer leads Molly's Bakery, one of Egypt's most efficient bakery chains. He has played a pioneering role in transforming consumer behaviour in Egypt, introducing popular products such as packaged peanuts, breakfast cereals, and energy bars, thus reshaping the local food industry.

Profile of Tarek El Gammal

Tarek El Gammal brings two decades of experience across entrepreneurship, investment, and advisory services. He has founded four SMEs in Egypt and Dubai, including Nature’s Market, Egypt’s first online health store. Tarek also founded Ubuntu Investments, providing advisory services for SMEs, high-net-worth individuals, and family offices. His areas of expertise include buy-and-sell-side advisory, mergers and acquisitions, and debt structuring.

Through Ubuntu Consulting, Tarek empowers SME founders by offering strategies for growth, exports, and market expansion. He has led six investments with successful exits. Earlier in his career, Tarek held leadership roles at PepsiCo and Sadia International, driving market expansion efforts. Additionally, he mentors startups through platforms such as the IFC, UNIDO, The White House Foundation, and Flat6Labs.

With its expanded leadership and a broadened global focus, Moonbase Capital’s second investment vehicle positions itself to make a significant impact on the SME landscape. The firm’s commitment to fostering entrepreneurship in emerging markets promises long-term value creation through strategic investments and operational expertise.