CI Capital and Compass Launch EGP 3 Billion C3 Capital Fund for EGX Investments

CI Capital and Compass Capital have launched Egypt’s first onshore private equity fund, C3 Capital Fund 1, with EGP 3 billion in target size. This fund focuses on investing in EGX-listed equities through a Private Investments in Public Equities (PIPE) strategy, aiming to leverage synergies between the two firms. The fund received EGP 1.8 billion in initial commitments and engages leading banks and investors, seeking to address market valuation discrepancies.

CI Capital Holding, in collaboration with Compass Capital for Financial Investments, has announced the establishment of Egypt’s inaugural onshore private equity fund, C3 Capital Fund 1, with a targeted final size of EGP 3 billion. This fund will focus on investments in equities listed on the Egyptian Exchange (EGX) through an active shareholder engagement strategy.

C3 Capital Fund 1 adopts a Private Investments in Public Equities (PIPE) strategy, managed by C3 for Fund Management, a joint venture formed between CI Capital and Compass Capital. The fund seeks to leverage the strengths of both partners to implement a rigorous investment strategy aimed at capitalizing on market opportunities.

Mahmoud Khalifa, the Investment Executive Director at CI Capital, stated, “The partnership between CI Capital and Compass Capital brings together two industry leaders with complementary expertise.” He also noted that the fund has attracted a prestigious group of investors from both Egypt and the wider region, including top banks and affluent individuals, reinforcing their commitment to providing customized financial solutions.

Ahmed Hussin, the CEO and Fund Manager of C3 for Fund Management, pointed out the favorable timing for the fund’s launch, acknowledging a gap between the operational performance of businesses and market valuations in Egypt. He remarked, “Public markets are trading at an unnatural discount compared to private markets,” emphasizing that C3 Capital is well-positioned to exploit these market discrepancies through a private equity approach.

The successful first closing of C3 Capital was completed after receiving approval from the Financial Regulatory Authority (FRA) on March 2, facilitating EGP 1.8 billion in commitments from prominent institutional investors and ultra-high-net-worth individuals. The final closing targets a total of EGP 3 billion.

CI Investment Banking (CIIB) served as the transaction advisor, with Zaki Hashem & Partners providing legal counsel for C3, while Zulficar & Partners represented the institutional investors involved.

In summary, CI Capital and Compass Capital have launched C3 Capital Fund 1, Egypt’s first private equity fund focused on EGX-listed securities, aiming to attract EGP 3 billion. The initiative emphasizes a collaborative investment strategy, capitalizing on the current market inefficiencies between public and private sectors, thereby engaging prominent financial entities and high-net-worth individuals. The fund’s strategic positioning holds promise for substantial returns in the evolving Egyptian market.

Original Source: www.dailynewsegypt.com