PM — Are your fat cells in good shape?

Happy THURSDAY, wonderful people. The slide into the weekend is much calmer than we had anticipated, as the news cycle takes a bit of a breather this afternoon.

CORRECTION- In this morning’s edition of EnterpriseAM, we incorrectly wrote in the TL;DR that Trella raised a USD 20 mn round. It was digital banking app Telda that raised the round. The entry has been updated on our website and we apologize for the error.

THE BIG STORY TODAY

Egypt backs UN resolution condemning Russia’s Ukraine annexations: Egypt voted in favor of a UN General Assembly Resolution earlier this week condemning Russia for annexing several regions in Ukraine and demanding that Russia reverse the move, the Foreign Ministry said in a statement. The statement also reiterates Egypt’s calls for Russian and Ukraine to reach a diplomatic solution to the conflict.

THE BIG STORY ABROAD

US core inflation hit a four-decade high in September, although the consumer price index rose at a slower pace during the month, coming in at 8.2%, according to Bureau of Labor Statistics data. The core inflation figure, which strips out food and energy costs, rose 0.3 percentage points from August. The story is on the front pages of the Wall Street Journal, the New York Times, and the Financial Times this afternoon.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• An assistance package from the IMF is in the “final confirmation” stage, Finance Minister Mohamed Maait said on the sidelines of the IMF / World Bank Annual Meetings.
• The Siemens-built, 4.8 GW combined-cycle power plant in Beni Suef has reportedly been tapped as the first of the three plants to be transferred to the Sovereign Fund of Egypt’s (SFE) pre-IPO fund before the end of the year.
• Egypt’s external debt dropped 1.3% q-o-q to USD 155.7 bn during the fourth quarter of last fiscal year (from April-June 2022), down from an all-time high of USD 157.8 bn the preceding quarter.

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Take our EV survey: Are you an ex-petrolhead shopping around for your first electric vehicle? EV-curious and wondering what all the fuss is about? Or are you not ready to say goodbye to that sweet smell of benzene as you wait at the gas station?

We want to hear from you: We’re taking the pulse on how the nation feels about Egypt’s nascent EV transition. Take a few minutes to fill out our short survey. We’ll be back with the results in a couple of weeks.

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???? CIRCLE YOUR CALENDAR-

Bread reform committee should get House approval on Sunday: The House should approve Supply Minister Ali El Moselhy’s proposal to form an ad hoc committee to look into possible changes to the country’s massive bread subsidy program during its session on Sunday, 16 October.

The EGX is looking to drum up interest in listed companies on a roadshow to Dubai and Abu Dhabi later this month, an EGX source told Enterprise. The bourse has tapped Al Ahly Pharos to help manage the roadshow, with EGX boss Rami El Dokany set to meet with as many as 100 regional and international financial institutions, the source said.

Fuel prices to rise this month? We’re expecting the government to hike fuel prices for the seventh consecutive quarter when the fuel pricing committee meets this month. Fuel prices have risen by as much as 28% over the past 18 months in response to heightened international oil prices, which surged earlier this year on the back of Russia’s invasion of Ukraine.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- It’s going to be a little cooler over the weekend, with temperatures peaking at 27-29°C in the day and hitting as low as 21°C at night, the national weather service says. There’s also a chance of rain along northern coastal regions.

Get ready to merge the real world with make believe: Meta Platforms has unveiled the new Meta Quest Pro, a virtual and mixed reality headset which will allow you to interact with virtual creations superimposed onto the physical world around you. Revealed at Meta’s annual Connect conference, the headset will cost USD 1.5k and will be available for purchase from 25 October.

Quest Pro has cost Zuck a lot of money: Meta already lost as much as USD 16.2 bn so far creating this visionary product, Reuters reports. The headset is being marketed for designers, architects and other creatives who can immerse themselves in the digital world, manipulating virtual objects in real life contexts.

Body fat can be metabolically healthy or not: Having body fat is completely healthy, it all comes down to the size of the fat cells and whether or not we exercise them, according to research from the University of Copenhagen picked up by the Washington Post. A person with healthier and smaller-sized fat cells is less at risk for inflammation than an unhealthy person with the same body fat percentage, researchers tell WaPo.

So, it’s the cell size that matters: When our fat cells are large, they overflow and leak fatty acids into our bloodstreams, which find homes in our organs, leading to unpleasant results. Smaller fat cells suck up fat from our blood and have tons of active mitochondria and functioning blood vessels to transport oxygen and nutrients to cells, boosting immunity and fighting inflammation. Researchers who biopsied abdominal fat from young inactive men, older inactive men and physically active older men found that the fat cells from the inactive older men had fewer mitochondria than in the young men’s fat and produced less energy. The physically active men’s fat cells had plenty of mitochondria — even more than the young men’s fat tissue — and their fat cells supplied more energy.

It’s never too late: You don’t necessarily have to lose weight to make your body fat metabolically healthy and even if you start exercising now, no matter how inactive you’ve been, your fat’s fitness can improve. A new study published in the Journal of Physiology biopsied fat tissue from 36 inactive obese men and women then asked them to ride a stationary bike four times a week for 3 months. The participants reduced the size of their fat cells, without losing weight, and boosted blood vessel capacity leading to more cell nourishment and fewer biochemical markers of inflammation.

???? ON THE TUBE TONIGHT-
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In the mood for an Italian rom-com? Netflix’s Jumping From High Places is a coming-of-age film that centers on Sole, a woman living in picturesque southern Italy who is unable to live life to the fullest due to a debilitating anxiety disorder. Her former love interest comes back to town with a long-overdue letter from his deceased sister Emma, who used to be Sole’s best friend. The letter prompts Sole to make a list of her fears and overcome them one at a time, opening up a world of possibilities. While not exactly Oscar-worthy, this lighthearted movie is full of heartwarming moments and laugh-out-loud anecdotes. It’s also refreshing to see a coming-of-age story that doesn’t revolve around a teen who miraculously figures out life by the time they graduate.

⚽ The UEFA European League resumes this evening. Here are the most notable matches:

• Bodo Glimt v Arsenal (6:45pm)
• Man United v Omonia (9pm)
• Real Betis v Roma (6:45pm)
• Nannent v Freiburg (6:45pm)
• Trabzonspor v Monaco (9pm)

CAF Champions League: Zamalek will face Burundi’s Flambeau du Centre tomorrow night in the second leg of the 32nd round of the CAF Champions League at 7pm, after winning 1-0 in the first leg.

On Saturday, Al Ahly will play Al Ittihad of Monastir in the same round at 6pm. Al Ahly won 1-0 in the first leg as well.

Europe's top leagues recommence on Friday: Brentford plays Brighton in the English Premier League at 9pm, while Rayo Vallecano plays Getafe at the same time in La Liga.

On Saturday, there are plenty of games in the major European leagues, although the biggest teams will mostly play on Sunday. Keeping us busy on Saturday:

In the English Premier League:

• Leicester City v Crystal Palace (1:30pm)
• Wolverhampton v Nottingham (4pm)
• Fulham v Bournemouth (4pm)
• Tottenham v Everton (6:30pm)

In Spain’s La Liga:

Girona v Cadiz (2pm)

Valencia v Elche (4:15pm)

Real Mallorca v Sevilla (6:30pm)

Athletic Bilbao v Atlético Madrid (9 pm)

In Italy’s Serie A:

Empoli v Monza (3pm)

Torino v Juventus (6pm)

Atlanta v Sassuolo (8:45pm)

FROM THE DEPT OF GOOD NEWS- Marksman Azmi Mehelba became the first Egyptian to secure his spot at the 2024 Paris Olympic Games after earning gold at the World Shotgun Championship, Ahram Online reports.

???? EAT THIS TONIGHT-

Everyone’s favorite side dish gets its day in the sun: Nasr City fast food joint Forkfull’s loaded fries spruce up the popular side dish with plenty of toppings to choose from. Take your pick from honey mustard and crispy chicken bites to sour cream, guacamole, and pico de gallo. You can also choose between Doritos or Cheetos-topped mac and cheese and all sorts of pasta from veggie to chili beef, all served in bright paper cups for enjoying on-the-go. While their dishes are in no way a healthy option, their gooey melted cheese topped dishes hit the spot when you’re in need of a comfort food pick-me-up — and are well worth the indulgence. Forkfull also delivers all over Cairo.

???? OUT AND ABOUT-
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Wrap up the work week tonight with jazz at Room Art Space Garden City, where Rashad Fahim Trio will be performing a combination of jazz classics and original songs across a range of genres like swing, Latin, and funk. Doors open at 8:30pm, and the music starts at 9pm.

Market season is in full swing, starting with Kitchinco’s first Friday market: Some of our favorite eateries and cloud kitchens will be there, as well as live music by Roupen Arslanian, at their venue in Maadi from 12-9pm.

Mama’s Market follows up on Saturday: Edutainment center Steamulation Hub is bringing some of our favorite local brands in one place from 10am to 4pm at their vibrant venue in Maadi, and it’s bound to be a goldmine of goodies.

???? EARS TO THE GROUND-

Is GDP all it's cracked up to be as a measurement of economic success? UNCTAD’s podcast The Weekly Tradecast explores how significant events are shaping trade and development and how they impact people globally. Hosted by Sarah Thomas, a recent episode with Anu Peltola, officer-in-charge of statistics at UNCTAD, delves into economic growth and how we go about measuring it. Gross Domestic Product (GDP) has served as a yardstick for a nation’s success for almost 80 years, but is it fair?

GDP’s shortcomings: While higher living standards are often associated with growing economies and financial strain are typically associated with shrinking economies, not everyone benefits from growth. Inequality is an issue even in developed economies and the effects of climate change raise significant concerns about the connection between growth and carbon emissions. GDP also does not consider sources of income and what they are used for, nor does it take into account unpaid domestic labor — often performed by women. These drawbacks raise questions as to whether GDP alone can be an accurate indicator of economic strength and whether our fixation on economic growth is outdated.

MARKET NEWS-

Dairy company Juhayna will pay out dividends of EGP 0.35 a share for 2021, redeemable on 3 November, it said in an EGX disclosure (pdf).

The EGX30 rose 0.5% at today’s close on turnover of EGP 1.01 bn (2.9% above the 90-day average). Foreign investors were net sellers. The index is down 17.5% YTD.

In the green: Cleopatra Hospitals (+4.4%), Elsewedy Electric (+3.4%) and Madinet Nasr Housing (+2.0%).

In the red: GB Auto (-2.4%), Orascom Construction (-2.3%) and Rameda Pharma (-1.1%).

Private equity is (finally) making room for retail investors: PE firms are beginning to heed retail investors’ demands to be let in on private equity, as they look to diversify from stocks and bonds in what has been the worst year for markets in years. Historically walled off from retail traders by difficult accreditation requirements and large ticket sizes, some PE firms are now moving to open up their portfolios to individuals. Meanwhile, a slate of startups have popped up looking to democratize the industry and facilitate retail investments.

By the numbers: So-called “alternative” assets, such as real estate, private equity, and credit account for 30-50% of institutions’ investments, according to a Mckinsey study. On the other hand, the average retail investor has just 2% in alternatives. While it’s mostly unorthodox, some asset managers — including Schroders, Abrdn, Jupiter and Baillie Gifford — provide some form of access for individuals, though it has still been limited.

What’s changed? PE firms are adjusting to a world of more diversified investments. Most institutions set limits on how much they will invest in alternatives, and most have already maxed out, the Financial Times writes. Meanwhile, individual investors are increasingly looking to diversify their investments as old-school market trends die out — the traditional 60/40 portfolio mix of stocks and fixed income is feeling increasingly passé, said Matt Brown, founder and CEO of CAIS, a marketplace for alternatives investments. and especially as market volatility becomes the new norm. With new market trends now seeing most institutions’ investments heading towards these “alternative” investments, “any wealth adviser not using alternatives in the next few years will be at risk of not having a practice,” he added.

Experts think PE for retail investors will boom over the next decade: “In five or 10 years private equity will be for most people as common and as accessible as public markets,” Steffen Pauls, founder of retail-focused PE investment platform Moonfare, estimates in a separate interview with the FT. Mckinsey also sees retailers doubling their PE investments to 5% of their portfolio in the next three years, injecting some USD 500 bn to USD 1.3 tn in new capital to the asset class.

Wealth management departments at large financial institutions are shifting their focus to PE: Most large financial institutions are reaching individuals through wealth management, a business that combines asset management with financial planning and advice. “There is a tremendous transfer of capital under way out of the traditional wealth management industry into alternative investments,” Brown says. PE pioneer KKR is expecting some 30-50% of its incoming capital to come from wealthy individuals over the coming period, the FT reports.

Over in startup land, fintechs looking to democratize the industry are booming: Berlin-based Moonfare has some USD 150 mn in assets under management in the US, while US-based startup Allocations — which is valued at around USD 150 mn — similarly allows retail investors to make PE investments. The two companies are working to attract retail investors to the asset class by making it more accessible and reducing the minimum investment amount required for investors to get in on a PE investment. “Traditionally, retail investors, if they go to their bank, their minimum to invest [in alternative assets] is really high, like USD 5k to a mn USD, but on Allocations, you can have any minimum,” Allocations CEO and founder Kingsley Advani said.

Traditional PE firms are also beginning to accept smaller ticket sizes: KKR last month decided to tokenize part of one of its funds, helping it streamline administration processes and allowing it to accept smaller checks from investors. Administrative processes often prove costly for asset managers, which is part of the reason why they tend to prefer bigger checks — and ask for bigger fees — to compensate. These ticket sizes would traditionally be in the mns, but providers are beginning to bring that number down to USD 50k or lower, according to the Financial Times.

Time spend is another factor: Institutions and very high net-worth individuals can afford to lock up mns of USDs for years in the asset class, which not only comes with hefty fees but is also often illiquid for years.

But new solutions are emerging to make investing in PE more accessible, the FT says. Some are now offering “semi-liquid” funds, which act like mutual funds but limit the amount investors can withdraw in a given period, giving investors some flexibility but still imposing limits on how much money they can make in the near term from the asset. Investment trusts, which are used to hold PE investments, are also increasingly being used in the UK in a bid to integrate PE investments into other investments as part of one vehicle, eliminating the need for a minimum ticket size and allowing investors to publicly trade their shares on the market and reap more short-term rewards from PE investments. An even more attractive and accessible option for investors is pooling resources with other investors to invest directly in PE transactions.