Chairperson of Catalyst Partners Maged Shawky revealed that the company launched an investment fund for small- and medium-sized enterprises (SMEs) with an initial capital of EGP 400m that will secure its first closing in mid-April 2022, pointing out that the fund is targeting to expand its size to EGP 1bn within five years.
On the side-lines of a press conference held by the company, Shawky told DNE that the fund aims to invest in several companies, pointing out that the focus is on defensive sectors with growth and profitability.
The sectors targeted for investment are agricultural manufacturing, pharmaceuticals, and logistics. The exit scenario from invested companies after the end of the investment period of about five to seven years will take place through the Egyptian Stock Exchange (EGX).
The fund’s founders also include the Insurance Holding Company, Misr Insurance, Misr Life Insurance, Misr Fund for Finance and Investment, Banque du Caire, Post for Investment Company, and Attijariwafa Bank.
He added that the fund will apply the principles, criteria, and tools for measuring the impact of the United Nations Development Program (UNDP) in cooperation with the UN to achieve the sustainable development goals included in Egypt’s national development plan via influential investment.
Shawky also pointed out that these types of funds are usually established outside the country, but the main objective of launching them locally is to give local banks and financial institutions the opportunity to enter into these types of funds.
Last January, Catalyst Partners Holding acquired a 25% stake in Public Partners Insurance Brokerage (PPIB) as part of its expansion plan.
The partnership aims to add a new activity to Catalyst in addition to non-banking financial activities, direct investment in family business SMEs, and entrepreneurship.
The partnership also aims to provide a technological infrastructure to offer insurance services to a new segment of public partners, namely individuals.
This step is consistent with the directives of the Financial Regulatory Authority (FRA) to control the pace of the insurance market and review the activity of existing companies and the extent of their commitment to the standards, laws, decisions, and rules in force, as well as the availability of the technological infrastructure.
The FRA issued decision No. 82 of 2020 on June 3, 2020, to stop granting new licenses to insurance and reinsurance brokerage companies.