CI Capital, a prominent diversified financial services group, has partnered with Compass Capital for Financial Investments, an Egyptian alternative investment manager, to launch the C3 Capital Fund 1. This fund aims for a target size of EGP 3 billion (approximately $59.2 million) upon its final close and is focused on investing in equities listed on the Egyptian Exchange (EGX) with an emphasis on active shareholder participation.
C3 Capital Fund 1 employs a Private Investments in Public Equities (PIPE) strategy, which is managed by C3 for Fund Management, an independent joint venture formed between CI Capital and Compass Capital.
Mahmoud Khalifa, the investment executive director at CI Capital, commented on the collaboration: “The partnership between CI Capital and Compass Capital unites two industry leaders, each bringing unique yet complementary strengths to the table. Compass Capital’s proficiency in value investing across various sectors, combined with CI Capital’s expertise in investment management and financial services, creates a formidable synergy.”
Khalifa further emphasized the innovative nature of C3’s approach: “C3 Capital exemplifies our ongoing commitment to innovation in delivering customized financial and investment solutions. We take great pride in having assembled a distinguished group of investors from Egypt and the surrounding region, including leading banks, financial institutions, and high-net-worth individuals, all of whom have placed their confidence in this promising fund.”
Ahmed Hussin, CEO and fund manager of C3 for Fund Management, remarked on the timing of the fund’s launch:
The introduction of C3 Capital is particularly timely, as the Egyptian capital markets currently reflect a notable disconnect between operational performance and market valuations. The public market is trading at an unusual discount compared to the private market. C3 Capital is strategically positioned to take advantage of these market inefficiencies, with the goal of uncovering hidden value by applying a private equity investment strategy to publicly listed companies. This strategy focuses on identifying fundamentally strong firms and enhancing their value through strategic insights, operational support, and financial guidance.
The first closing of C3 Capital has already garnered commitments totaling EGP 1.8 billion (around $35.5 million) from a mix of institutional investors, family offices, and high-net-worth individuals. CI Investment Banking served as the advisor for this transaction. Additionally, Zaki Hashem & Partners acted as legal advisors for C3, while Zulficar & Partners represented the institutional investors in a legal advisory capacity.
