Union Capital is the first private equity firm in Egypt to be uniquely focused on the SME investment space.

Historically the majority of private equity transactions in Egypt have been in buyouts of large existing businesses or of green field financing. The founders of Union Capital saw the requirement and opportunity to establish a fund which provides private equity to the space between established companies and green-field start-ups.

Our orientation is to provide equity capital for growth and expansion. Our investment selection process is therefore geared toward financing those companies looking to grow through the transfer, adaptation and commercialization of existing technologies.

SME’s are an important component of the Egyptian economy:

• Represent more than 80% of the Egyptian GDP,
• Employ 75% of the Egyptian workforce, and
• Represent 98% of the total number of companies in Egypt
  (Source: HSBC and GAFI)

Union Capital believes that the role of private equity, particularly at the SME level, is to provide more than just equity finance for growth and expansion. Our intent is to play an active role in helping to improve the operational, financial, and organizational and management performance of all our investments to the extent that we can add value in this regard.

Egypt is the largest Economy in North Africa with an annual compound growth rate since 2005 of 6.29 %. It has a large, young and growing population and enjoys rising rates of consumption. The proportion of households with more than USD 5,000 per annum of disposable income has moved from 16% in 2004 to 53% in 2008.

Against this background Union Capital believes that the investment opportunities for capital to support growth, expand business and encourage economic development are enormous.