The Egyptian Financial Regulatory Authority, led by Dr. Islam Azzam, has approved the establishment of an investment fund for restructuring distressed factories. The fund, numbered 1033, is set to open for subscription on October 4, 2026. The fund's documents will be offered according to specific conditions detailed in the information memorandum approved by the Authority. The fund will have a total value of one billion Egyptian pounds, with one billion documents available for subscription, including those subscribed by the fund's founder.
Dr. Islam Azzam, head of the Financial Regulatory Authority, stated that the launch of this fund is a result of joint efforts and close cooperation between the Authority and relevant parties. The goal is to implement the state's plan to rescue distressed industrial companies and factories, utilize their production capacities and existing assets, and support the sustainability of the industrial sector. Azzam emphasized that the Authority continues to use non-banking financial products to enhance vital sectors of the national economy.
The fund, established as a closed private equity investment fund, will be offered through a private placement limited to qualified financial institutions, public and private entities, and individuals. The fund will be managed by "CI Capital PE" for fund management and investment. Its primary objective is to invest directly in shares and stakes of distressed companies operating in various industries, including food, engineering, chemicals, textiles, pharmaceuticals, and construction materials.
The fund aims to participate in the investment process to support the restructuring of these companies, develop their operational and financial policies, and ensure the implementation of a recovery plan. The fund will work in coordination with the executive administrations of distressed companies and factories to achieve its objectives. The investment committee of the fund will be responsible for making decisions, and a technical committee comprising experts in the relevant industrial sector may be formed.
The fund's investments will be evaluated before purchase and exit, and the net assets of the fund will be assessed twice a year with the help of independent financial advisors registered with the Authority. The fund was established in accordance with the Capital Market Law No. 95 of 1992 and its executive regulations. The fund's target size is one billion Egyptian pounds, to be paid in installments based on available investment opportunities.
The fund's manager is required to consider a set of quantitative and qualitative criteria when selecting target companies, ensuring that they have the potential for reform and can generate a substantial return after restructuring. The fund's establishment is expected to contribute to the development of the industrial sector and support the state's efforts to revive distressed companies.
The Financial Regulatory Authority's decision to approve this fund reflects its ongoing efforts to promote and regulate non-banking financial activities in Egypt. The Authority aims to create a favorable business environment and encourage safe and regulated investments. The establishment of this fund is expected to have a positive impact on the Egyptian economy and the industrial sector in particular.
Key points
- The Egyptian Financial Regulatory Authority has approved an investment fund to restructure distressed factories with a target size of one billion Egyptian pounds.
