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Monday, 2 August 2021

Four state-owned banks to launch EGP 1 bn fund in 4Q2021

The EGP 1 bn fund of funds which is expected to be launched by Egypt’s biggest state banks will launch in 4Q2021, an official at one of the banks told us, confirming statements by the National Bank of Egypt’s (NBE) Group Head of Investment & Assets Management Ahmed El Said to the local press. El Said also noted that the Suez Canal Bank will be joining the consortium establishing the fund, which consists of NBE, Banque Misr, Banque du Caire (BdC).

The consortium appears to have hired Washington DC-based asset manager Avanz Capital, an affiliate of I Squared Capital with over USD 13 bn in assets under management, to manage the fund, El Said revealed. The asset management firm invests in funds and companies across emerging and frontier markets with a focus on Africa, Latin America and emerging Asia.

Areas of interest: The fund plans to invest in SMEs and companies operating in healthcare, education, fintech, agribusiness, renewables, fast-moving consumer goods as well as information and communications technology, a BdC source earlier told us back in June.

What’s a fund of funds? In basic terms, a fund of funds is one that chooses to invest in other funds — whether equity or debt — rather than individually vetting specific companies or debt issuances it may want to back. The fund managers to whom the FoF hands AUM are then trusted to generate returns that pass back to the managers of the fund of funds.

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