UCPE I -- The Fund’s investment strategy is to provide risk capital to enable the growth, development restructuring and expansion of Egyptian small and medium businesses through the upgrading, modernization and professionalization of their management systems, service delivery and business models to enhance their organizational capacity, operational competence and commercial success.

The Fund will make investments in companies operating, but not necessarily incorporated in Egypt. Investments will include expansion capital, spin-offs from business restructuring or from privatizations, finance required prior to intended initial public offering and management buy-outs. In certain circumstances the Fund may invest in listed equity and equity linked investments.

The Fund seeks to generate superior returns for investors through providing growth and expansion capital to a portfolio of actively managed Egyptian SME investments, with holding periods of 3 - 5 years.

Investors will find our investment strategy compelling along a number of dimensions as we move to capitalize on the opportunities presented by Egypt’s growth story:

• Local, embedded, highly qualified and well-networked investment team.
• Hands-on, active ownership approach to value creation.
• Target economy has proven resilient throughout the global financial crisis, with real annual GDP growth continuing to outperform those of the World and rest of the region.
• Rigorously developed sector focus, supported by a solid growth trajectory and aligned with positive economic fundamentals.

Egyptian small and medium sized businesses are a highly under-funded segment but exceptional growth and value potential.

Sectors Targeted

The Fund targets investments in the consumer, industrials and business & financial services sectors.

Investment Restrictions

• Investments involving harmful or exploitative forms of Forced Labour or Child Labour. Forced labour means all work or service, not voluntarily performed, that is extracted from an individual under threat of force or penalty;
• Investments in the production or trade in any product or activity deemed illegal under the Arab Republic of Egypt or Cayman Islands laws or regulations or international conventions and agreements;
• Investments in the production or trade in weapons and munitions;
• Investments in the production or trade of radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where the radioactive source is considered to be trivial and/or adequately shielded;
• Investments in the production or trade in alcoholic beverages
• Investments in the production or trade in tobacco;
• Investments in the production, distribution or trade in pornography, gambling, casinos and equivalent enterprises;
• Investments or trade in wildlife or wildlife products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora;
• Investments in the production or trade in or use of unbounded asbestos fibers;
• Investment in the production or trade in products containing PCBs.5. PCBs: Polychlorinated biphenyls – a group of highly toxic chemicals. PCBs are likely to be found in oil-filled electrical transformers, capacitates and switchgear dating from 1950-1985;
• Investments in the production or trade of pharmaceuticals subject to international phase outs or bans, pesticides/herbicides subject to international phase out or ozone depleting substances subject to international phase out. Ozone Depleting Substances (ODSs) are chemical compounds which react with and deplete stratospheric ozone, resulting in the widely publicized "ozone holes" as listed in the Montreal Protocol.