The “Investment Fund for SMEs Development” is a private-equity and venture- capital fund dedicated to  small and medium enterprises (SMEs).  The main objective of the Growth Fund is to provide  the financial support required to promote the growth of Egyptian SMEs.

 The SMEs fund’s investments will be commercially operated and will be dedicated to project contributing to employment and income generation in underserved areas, environmental sustainability and clean energy as well as social protection of employees and sound corporate governance

Legal Status:

A closed fund  established  according to the provisions of the Capital Market Law,  law 95 for the year 1992 and its executive regulations and is domiciled in Egypt.

Size and Currency:

The target size of the fund is EGP 1 billion.

The fund will be managed by one or more local fund managers who will be selected by means of a fair and transparent selection process without undue exposure to excessive  risk. 

Investment Criteria:

The fund will invest in Small and Medium Enterprises that have a issued or net worth capital not exceeding EGP 50 million

The Fund will aim to establish a portfolio diversified as follows:

Geographical distribution of investments: No more than 40% of the overall portfolio of investments shall be allocated to SMEs located in the Greater Cairo governorates (Cairo, Giza, 6th of October, Helwan and Shubra al khaima).

The SME Fund’s focus should consider impact on employment generation and environmental sustainability promoting clean development mechanisms in line with the Kyoto Agreement for carbon emission reduction.

CSR, Protection of Children Rights and Gender Enabling Working Environment  are all critical criteria that need to be taken into consideration in all proposed investments.

 In General , all investments should have an impact on the following socio-economic and political objectives:

• Employment generation
• Income generation in underserved areas
• Environmental sustainability
• Social protection of employees
• Sound corporate governance
• Children and Gender rights

Proposed Acquisitions: 

• 30 to 45%  to maintain strategic minority  position and  blocking rights, majority acquisition options will be dealt with on case by case basis.

Investment Cycle :   

• 3 to 5 years for medium size projects
• Up to 7 years for start –ups and small size projects

Exit Strategy :  

• IPO Nilex
• Management Buyouts – management plans to gain ownership
• Owners buy back
• Private sale to strategic investors (local or foreign)