Egypt’s CI Capital Private Equity for Fund Management and Investment (CIPE), the private equity arm of the leading financial services group, is launching a new EGP 1 billion ($21 million) fund to invest in and revitalize distressed industrial companies. The initiative, developed in partnership with local banks and financial institutions, aims to provide crucial capital and operational support to struggling factories across the nation.
A Government-Backed Initiative
This fund is a key component of a broader Egyptian government initiative announced last month by Kamel Al-Wazir, Minister of Industry. The national plan aims to restart approximately 6,000 distressed factories that have faced operational and financial challenges. According to Mahmoud Khalifa, Executive Investment Director of CIPE, CI Capital’s fund will directly serve this strategic national objective by targeting factories operating at an efficiency level of only 5-10%. The fund will invest in these companies in exchange for a stake, with the goal of returning its capital once the factory has stabilized and resumed full production.
The Turnaround Strategy
The fund’s investment model focuses on creating long-term value and sustainability. It will acquire minority stakes in struggling factories, injecting capital and providing strategic oversight to guide them back to profitability. The maximum support for any single factory is capped at EGP 50 million, with a typical investment period ranging from 2.5 to 3 years per project. This structure allows the fund to actively participate in the recovery process before exiting and recycling capital into new opportunities.
Sector Focus and Fund Details
With a planned term of five years, the EGP 1 billion fund will concentrate on key strategic sectors vital to the Egyptian economy. These include food, medical supplies and pharmaceuticals, engineering, and chemical industries. By focusing on these areas, the fund not only aims to achieve financial returns but also to bolster local manufacturing and supply chains. Khalifa confirmed that the establishment procedures for the fund are expected to be finalized within the current quarter.
About CI Capital Private Equity
CI Capital Private Equity for Fund Management and Investment (CIPE) is the private equity division of CI Capital Holding, one of Egypt’s leading diversified financial services groups. CIPE focuses on investing in promising companies across various sectors, managing funds, and leveraging its expertise to drive growth and create value for its portfolio companies and investors.
Source: Zawya
