Beltone launches small/mid-cap fund

BELTONE FUND: New $200m vehicle from Egyptian private equity firm set to make investments in both local small/mid-caps, as well as across the wider Gulf. (Getty Images)

Egypt's Beltone Private Equity said on Wednesday it was launching a $200 million fund to invest in small and medium sized companies in Egypt and the Gulf, aimed at firms it said had growth potential despite the downturn.

The fund includes an Egypt sub-fund worth $100 million, which has the backing of the World Bank's International Finance Corporation and the European Investment Bank, both committing $16.5 million each, and possibly more, a Beltone executive said.

Export Development Bank of Egypt has made an additional commitment of $10 million.

"Now is a very difficult time for raising funds but we hope that by the end of the year we probably will reach 75 percent (for the Egypt sub-fund) and then we will continue for another six months to close it," Beltone Private Equity Chief Investment Officer Abdel-Monem Omran said.

The first closing for the sub-fund that covers the GCC is the fourth quarter of 2009.

The Beltone MidCap Fund will invest in minority and some majority stakes in firms with revenues of $5 million to $50 million. Beltone will work on the fund with SIGEFI Private Equity, part of France's Siparex Group, via a joint venture.

Egypt's economy, particularly its exports, have been hit by the global slowdown, helping drive the country's growth down from around 7 percent a year to 4 percent.

But Omran said the fund could target firms involved in agribusiness, textiles and other areas. He said Egypt's financial system was not facing a liquidity crunch and had attractions to investors such as proximity to European markets.

"Now that doesn't mean that things will not be affected... Since we are a long term investor, we are looking three or five years down the line, not today, so we believe that yes there are opportunities," he said.

Haydee Celaya, direct of private equity and investment funds at the IFC, said the fund could invest in 12 to 20 firms. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM