In a pioneering move for Egypt’s financial landscape, Compass Capital and CI Capital have joined forces to establish the country’s first onshore private equity fund, C3 Capital Fund 1.
Designed to support economic growth through private investment in public equity (PIPE), the fund aims to address liquidity challenges within Egypt’s capital markets. By adopting an active shareholder approach, C3 Capital Fund 1 will focus on investing in shares listed on the Egyptian Exchange (EGX), providing companies with enhanced access to capital and stimulating broader market activity.
The fund’s first close on 2 March, following regulatory clearance from Egypt’s Financial Regulatory Authority, raised EGP 1.8 billion (USD 35 million) from a mix of institutional investors and high-net-worth individuals. The final close is anticipated to bring the total to EGP 3 billion (USD 59 million). Legal counsel for the fund’s sponsors was provided by Zaki Hashem & Partners, while institutional investors, including Commercial International Bank and Banque Misr, were advised by Zulficar & Partners. CI Investment Banking played a crucial role as the financial adviser on the transaction.
The launch of C3 Capital Fund 1 comes at a critical time for Egypt’s capital markets, where there is a notable disconnect between operational performance and market valuations. According to Ahmed Hussin, CEO and fund manager of C3 for Fund Management, the market is trading at a significant discount compared to private valuations, creating a unique opportunity for the fund to unlock hidden value. By applying a private equity strategy to publicly listed companies, the fund aims to bridge this gap, providing much-needed liquidity and fostering long-term growth in Egypt’s economy.