Fund run by Rachid Mohamed Rachid acquires minority stake in Azza Fahmy
Bidayat invests in Azza Fahmy Jewelry: Mediterranean-focused investment fund Bidayat has acquired an undisclosed minority stake in artisanal jewelry company Azza Fahmy, fashion magazine Women's Wear Daily reports.
There are few details on the financial side: Azza Fahmy CEO Fatma Ghaly remained tightlipped on the financial terms of the transaction, saying only that it was executed through a capital increase in the company via new shares issuance. This gave the investment fund a “significant minority stake.”
But the company is clear on where it wants to go: The luxury brand plans to open two new flagship stores in the first half of 2023 and expand internationally, including eventually making its debut in the US.
Bidayat is run by former Egyptian trade and industry minister Rachid Mohamed Rachid, who is now chairman of fashion giants Valentino in Italy and Balmain in France, as well as CEO of Qatari luxury goods investment vehicle Mayhoola. It is a sub-fund of the Swiss-based Alsara Investment Group, which has recently embarked on a string of partnerships with high-profile fashion brands, buying a stake in Swiss eyewear start-up Akoni Group and acquiring a majority share in puffer-jacket brand Khrisjoy, and Adorisa and lately luxury Egyptian handbag brand Okhtein.
Rachid has big plans for the company: Bidayat wants to add five or six new locations in the Middle East, Turkey and southern Europe every year, Rachid told the magazine. There is “serious potential” for the firm to expand the region before looking to markets further afield such as the US, China and the rest of Europe, he said.
Bidayat was not the first with an eye on Azza Fahmy: Several investors have been eyeing stakes in the female-led family business in the past years, Ghaly said, yet Bidayat was selected due to Rachid’s experience in the industry and expertise in digital, distribution and brand-building.
Advisors: Alliance Law Firm acted as Bidayat’s legal advisor, with BonelliErede in association with Bahaa-Eldin Law Office for Azza Fahmy.
LISTEN- We spoke to Fatma during Season One of our Making It podcast back in 2019. You can listen to the episode here.