الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA  Chairman:

• “This fund is the result of close collaboration to drive the state’s mission to rescue distressed industrial plants.”

• “The Authority is leveraging non-banking financial products to fuel vital economic sectors, with investment funds becoming powerful catalysts for business growth.”

As part of the Authority’s continuous support for vital economic sectors and in continuation of efforts to back the industrial sector through non-banking financial products under its supervision, Dr. Islam Azzam, FRA Chairman has approved licensing of Distressed Factories Restructuring Investment Fund (No. 1033) in light of presidential directives and Egypt’s Vision 2030. Unit subscription will start Sunday, October 4, 2026.

Under FRA-approved information memorandum, the fund is offering 1 billion units—including shares allocated to the founder—at a nominal value of EGP 1 per unit, bringing the total capital to EGP 1 billion.

Established under Capital Market Law No. 95 of 1992 and its executive bylaws, the fund targets a capitalization of EGP 1 billion, payable in installments aligned with viable investment opportunities. Under the approved memorandum, the investment manager will apply strict quantitative and qualitative criteria to select target companies with high turnaround potential, ensuring robust post-restructuring returns backed by comprehensive feasibility studies.

Dr. Islam Azzam emphasized that launching the Distressed Factories Restructuring Fund is the culmination of joint efforts and close cooperation between the Authority, relevant entities and fund stakeholders, aimed at implementing the state’s plan to rescue distressed industrial companies and factories, leverage their productive capacities and existing assets, and establish a fundamental step toward advancing and sustaining the industrial sector.

He explained that FRA remains committed to its approach of employing non-banking financial products to bolster sectors of vital importance to the national economy, as well as expanding and deepening the activities under its regulation to further increase their contribution to national economic. He noted that continuous development of the regulatory framework for open- and closed-end investment funds has positively impacted the ease of doing business and fostered secure investment pathways under FRA’s full supervision.

The fund operates as a closed-end private equity vehicle, offering its units through a private placement limited to qualified institutional, corporate and individual investors under FRA Board Decision No. 48 of 2019. CI Capital B.I. for Fund Management, Investment and Venture Capital will manage the fund’s investments.

It targets direct equity investments in struggling companies across core sectors—including food, engineering, chemicals, textiles and apparel, pharmaceuticals, and building materials—to overhaul their operational and financial frameworks.

Designed to spearhead corporate recovery, the vehicle steps in for industrial enterprises burdened by heavy debt and deferred obligations, yet possessing viable products, solid market share and core economic fundamentals.

The fund executes this role in coordination with the executive management of target companies, in line with directives from the fund’s Investment Committee. The investment manager is also authorized to form specialized technical committees comprising industry experts tailored to each transaction and target sector.

Furthermore, investment opportunities are evaluated prior to acquisition and divestment.  Independent financial advisors registered with FRA will assess the net asset value of the fund semiannually in accordance with FRA regulatory valuation standards.