CI Capital Holding (CICH.CA), a leading diversified financial services group, and Compass Capital for Financial Investments S.A.E.
, a top alternative investment manager in Egypt, have announced the launch of C3 Capital Fund 1, the country’s first onshore private equity fund. The fund targets a final close of EGP 3bn, focusing on EGX-listed equities and
adopting an active shareholder participation approach.
Strategic Investment Approach
C3 Capital Fund 1 employs a Private Investments in Public Equities (PIPE) strategy, managed by C3 for Fund Management, a newly established joint venture between CI Capital | Compass Capital.
This collaboration brings together two industry leaders, leveraging their combined expertise to execute a disciplined investment strategy that enhances shareholder value.
Mahmoud Khalifa, Investment Executive Director at CI Capital, commented:”The partnership between CI Capital | Compass Capital merges two distinct yet complementary strengths. Compass Capital’s deep expertise in value investing aligns seamlessly with CI Capital’s leadership in investment management and financial services, creating a powerful synergy.”
He further emphasized:”C3’s innovative approach underscores our commitment to delivering tailored financial solutions | investment strategies. We are proud to have secured the trust of an elite group of investors, including leading banks | financial institutions | high-net-worth individuals, from both Egypt and the region.”
Addressing Market Inefficiencies
Ahmed Hussin, CEO and Fund Manager of C3 for Fund Management, highlighted the fund’s timely entry into the market:”C3 Capital launches at a pivotal moment, as the Egyptian capital markets exhibit a clear disparity between operational performance and market valuations.
The public market is currently trading at an unnatural discount compared to the private market. Through C3 Capital’s private equity approach, we aim to bridge this gap by identifying fundamentally strong companies and enhancing their value through strategic insight | operational support | financial guidance.”
Strong Investor Commitment & Regulatory Milestone
The Financial Regulatory Authority (FRA) approved the fund’s first closing on March 2, 2025, securing EGP 1.8bn in commitments from institutional investors | family offices | high-net-worth individuals.
The final close aims to reach EGP 3bn, reinforcing the strong investor confidence in Egypt’s capital markets.
Advisors & Legal Partners
CI Investment Banking (CIIB) acted as the financial advisor for the transaction.
Zaki Hashem & Partners provided legal advisory services to C3 Capital.
Zulficar & Partners represented institutional investors as their legal counsel.
Conclusion
With C3 Capital Fund 1, CI Capital | Compass Capital have introduced an innovative private equity model tailored for publicly listed companies, addressing valuation inefficiencies | unlocking hidden value in Egypt’s financial markets.
The fund sets a new benchmark for alternative investments | private equity strategies in the MENA region, reinforcing Egypt’s position as an attractive destination for institutional investors | high-net-worth individuals.
