Direct Investment

Objective

To seek private equity investments with attractive risk/reward characteristics over a pre-identified investment horizon. Our objective is to substantially increase the value of each company’s portfolio over the anticipated holding period of the investment.

Mission

To add value to CIB shareholders in light of CIB mission: “To provide the best financial solutions to our clients & create more value for our employees, shareholders & community.”
To provide a unique opportunity for equity financing to promising businesses in Egypt and the region. The aim is to add value to our partners and provide them with opportunities for growth.
To provide financial advice to our partners, thereby helping them realize their growing ambitions.

This mission is accomplished through a hybrid of methods, comprising, but not limited to, realizing a steady stream of dividend distributions and capital gains, minimizing write-downs from investments and entering into new investments where the synergies for CIB is the focus.

Scope of Work

To act as CIB investment arm with respect to the bank’s engagement in direct equity finance transactions. Our main task revolves around the proper allocation of investment funds into specific industries where CIB return on investment would be optimally maximized. The department’s team is mainly responsible for the following:

Managing and monitoring all existing equity investments of the Bank.
Identifying, executing and diversifying in new feasible equity investments for the account of CIB and its clients. The analytical review and evaluation of proposed investments are based on certain guidelines proposed by the team and approved by CIB internal High Lending & Investment Committee.
During our holding period of a company’s portfolio, we aim at adding value by supporting the company’s growth through our active participation in the company’s BOD in addition to our maximization of synergies between the company and CIB, thus creating a “WIN-WIN” relationship.

Investment Strategy

Primary Focus

Matured, dividend generating companies with strong management track record in growing & profitable industries.

Investment Policy

Will consider minority equity stakes not exceeding 20% while securing minority protection rights (such as board seats, put options, tag-along rights, etc) and pre-defined exit routes (potential trade sales, IPOs, etc)

Average Holding Period

3-5 years

Targeted Returns

A hybrid IRR on exits exceeding 20%.

For further information, please contact:

Mr. Ashraf Shash

Director Head of Direct Investment

Telephone: (+202) 3747 2000

Telephone Dir.: (+202) 3747 2524

E-mail ashraf.shash@cibeg.com