IFC, EIB and EDBE invest in Beltone Midcap Fund
Beltone Private Equity, the private equity arm of Beltone Financial Holding is launching the Beltone MidCap Fund, a USD 200 million fund that targets small and medium sized companies (SMEs) in Egypt and the Gulf States (GCC) through the two sub-funds. The International Finance Corporation (IFC) a member of the World Bank Group, the European Investment Bank (EIB) and the Export Development Bank of Egypt (EDBE) are the anchor investors in the Egypt Sub-Fund, committing USD 16.5 million, USD 16.5 million and USD 10 million respectively .
The Beltone MidCap Fund will invest in privately-owned, financially sound, and promising SMEs or potential spin-offs from large companies with growth and export potential. Dr. A.M Omran Director of Beltone Private Equity, said, “The fund will be managed from Egypt to ensure maximum returns for investors by leveraging Beltone Private Equity’s expertise. In addition, Beltone Private Equity has established a joint venture with SIGEFI Private Equity, part of the Siparex Group in France, with its more than 30 years of expertise in private equity investments in SMEs in Europe and the US. Beltone and SIGEFI’s combined knowledge of the market, industries, financial relations and international contacts, particularly in the Euro-Med region will provide a strong flow of investment into the pipe line for the fund and support the investee companies by adding both regional and international exposure to all of the Fund’s investments.”
Dr. Omran also said that given the current financial situation, the Fund aims to provide these companies with needed growth capital, operational and strategic experience which is fundamental at their current stage. He added that the fund will invest in significant minority stakes and selected majority stakes in companies with operating history and revenues of USD 5-50 million.
Mr. Paul Tholly, Managing Partner of SIGEFI, expressed his confidence in the success of this joint venture between two significant players in private equity to enhance and develop the economic and industrial relationships in the Euro-med region. Private equity funds play an important role in supporting companies in emerging markets, which in turn help spur economic growth,” he said.
“We are pleased to partner with Beltone to support medium-sized enterprises in Egypt,” said Haydee Celaya, IFC Director, Private Equity Funds.
Beltone MidCap aims to raise a total of USD 200 million of which USD 100 million will be invested exclusively in Egypt; the remainder being invested in the GCC in cooperation with a number of prestigious institution investors from the region.
About Beltone Financial Holding SAE
Beltone Financial Holding is one of the fastest growing investment banks in the Middle East and one of the region’s leading financial services firms. Beltone serves investors in the world’s most exciting investment market, outranking every other investment bank in the Middle East for year-on-year growth since its inception in 2002. The focus of Beltone’s strategy is innovation and product differentiation.
Headquartered in Cairo, Egypt, Beltone Financial was founded by pioneers of the financial services industry and, attracting some of the brightest brains, has gown to a staff of almost 300 .Offices have been established in New York, Riyadh, Jeddah Dubai, Doha, Tripoli and Damascus.
Institutions, banks and high-net-worth investors in Egypt and the Middle East, Europe, North America and Asia are offered a full range of services including Investment Banking, Asset Management, Securities Brokerage, Research, Capital Markets and Private Equity investment. Clients benefit from portfolio management for all-risk profiles, investment horizons and fixed-income products, mutual funds and money market funds.
Beltone Asset Management launched the first money market accounts denominated in USD, Euro and EGP in Egypt, in affiliation with Banque Misr and Egypt Post; the First 401(k)-type tax-efficient savings plan; the first regional hedge fund; the MENA Equity Fund, which invests in listed equities across the region and various investor funds in partnership with banks in Egypt, such as HSBC, Suez Canal Bank and ABC Bank. Assets under management currently exceed USD 3.7 Billion.
Beltone Investment Banking has closed deals worth more than USD 7.5 Billion across the Middle East with clients that include: Ghabbour Auto; Orascom Hotels and Development; Wind Weather investments, and Celtel-Vodafone in Egypt, and Medgulf Insurance Company; SAICO; ACIG and Al-Ahlia Cooperative Insurance Company in Saudi Arabia, and DAMAC in Duba
About SIGEFI (SIPAREX Group)
With 30 years’ experience and approximately Euro 900 million (820 million as of today) in assets under management, the Siparex Group is France’s leading independent middle-market private equity specialist. The Group operates essentially in France and Southern Europe (Italy and Spain).
Since 1994, alongside its fund management business in Europe, Sigefi has developed a fund advisory, management, and co-management business in the emerging markets. It has conducted several assignments for the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and International Finance Corp. (World Bank group). On the southern shore of the Mediterranean, it has helped launch and expand Tuninvest Finance Group (Tunisia) and Capital Invest, a subsidiary of BMCE (Morocco), which are the two largest private equity investment fund management companies in North Africa. It is a shareholder and board member of these two companies. Sigefi has also been conducting a number of advisory assignments in Algeria and Lebanon.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. The IFC’s new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit: www.ifc.org