Zest Your Equity | 23-July-2025

This week’s agenda 📜

• Zest terms and concepts ✍️

• Who’s raising? 💰

• M&A activity 💼

• What we’re reading 📖

• What’s new at Zest 🕑

Let’s dive in 👇

Terms and concepts (PE edition!) ✍️

GP Commitment (aka, “skin in the game”): The amount of personal capital that a fund’s general partners (GPs) contribute to their own fund, typically expressed as a percentage of total fund size. Most institutional LPs expect a minimum of 1–2% to ensure alignment of incentives.

Continuation vehicle: A continuation vehicle is a new fund created by a private equity firm to acquire one or more assets from an existing fund it manages. These structures allow GPs to hold on to high-performing assets beyond the original fund’s term, offering liquidity to existing LPs while rolling committed capital from new or existing investors.

Vertical specialization: Vertical specialization refers to private equity funds that focus on a single industry (e.g., healthcare, industrials, or fintech) rather than investing across multiple sectors. These niche strategies are increasingly common among boutique and emerging managers.

For LPs, the appeal is that specialist funds often access proprietary deals by becoming the preferred buyer in their space. Their deep domain expertise also enables faster diligence and repeatable post-close value creation without relying heavily on external consultants.

However, vertical focus introduces key person risk. Many of these funds are lean and built around a single GP’s relationships or expertise. LPs should assess team depth and succession planning to ensure the strategy is durable.

When executed well, vertical specialization can deliver differentiated returns through speed, focus, and sector credibility, making it an attractive complement to more diversified PE exposures.

Who’s raising? 💰

• 🇦🇪 UAE-based deeptech startup XPANCEO has raised $250 million in Series A funding at a $1.35 billion valuation.

• 🇦🇪 UAE-based fintech Qlub has raised $30 million in a new funding round to fuel global expansion.

• 🇸🇦 Saudi Arabia-based SaaS platform Lucidya has raised $30 million in a Series B round.

• 🇲🇦 Moroccan superapp ORA Technologies has closed its Series A round at $7.5 million, led by Azur Innovation Fund and joined by three strategic local investors.

• 🇸🇦 Saudi Arabia-based Yasmina has raised $2 million in a seed round led by Scene Holding, with co-leadership participation from Access Bridge Ventures, Arzan VC, and Sanabil’s 500 MENA Accelerator.

• 🇸🇦 Saudi Arabia-based conversational AI startup Wittify.ai has raised $1.5 million in a pre-seed round from a syndicate of prominent Saudi angel investors.

• 🇦🇪 UAE-based femtech startup Ovasave, backed by Abu Dhabi’s Hub71, has raised $1.2 million in pre-seed funding from regional and international investors.

• 🇪🇬 Egypt-based fintech PALM has raised a 7-figure pre-seed round led by 4DX Ventures, with participation from Plus VC and international angel investors.

M&A activity 💼

• Saudi-listed Jahez Group has signed a definitive agreement to acquire 76.56% of Qatar’s Snoonu, a leading e-commerce and on-demand delivery platform, for a total of $245 million. Source.

• Egypt-based proptech Nawy has acquired a majority stake in Dubai-based SmartCrowd, a DFSA-regulated platform that enables fractional property investment in the region. Source.

• Tactful AI, the Egypt-born AI startup for customer experience (CX) management, has been reacquired by its original founders Mohamed El-Masry and Mohammed Hassan, following a decision to separate from Belgian business communications firm Dstny, which had acquired the company in 2022. Source.

Want to learn more? Schedule a time with our team below!