Managing Director of Al Mal: ​​Catalyst Partners aims to reach £ 1 billion in direct investment by 2022

Catalyst Partners Holding Company continues this year with its expansion plan in the local market, bringing the volume of its direct investments to one billion pounds, compared to 550 million pounds during the current period.

The company plans to expand overseas by opening subsidiary arms in Saudi Arabia, the UAE and Morocco, in addition to increasing the size of its managed assets by acquiring more new fund management.

Al Mal interviewed Abdul Aziz Abdel Nabi, managing director of the company, to learn more about Catalyst Partners’ strategy during the current year, and the impact of current events on its expansion plans.

Abdel Nabi initially said that his company started its expansion plan for the current year by completing an acquisition transaction in insurance brokerage, in addition to launching its fund, Catalyst Capital Egypt.

He pointed out that Catalyst intends to continue its expansion plan this year, based on multiple axes with its different arms, revealing that it plans to transform into an integrated investment bank by adding more new services by entities which are active in the market.

On the other hand, Abd al-Nabi explained that Catalyst Partners Holding seeks to create an integrated platform of non-banking financial services, through new additions of affiliate activities in the field, in addition to the financial leasing, factorization and insurance brokerage activities in which the company is currently operating.

He said Catalyst currently owns subsidiary arms operating in the areas of promotion and subscription coverage, and a direct investment arm, in addition to the recently launched “Catalist Capital Egypt” fund, as well as an arm for asset management and another for the portfolio management, in addition to a central custody license, and a sponsor of the Nile Stock Exchange.

50 diversified transactions completed by the promotion arm and IPO coverage within 7 years, worth £ 4.8 billion

He added that in terms of promotional arm and IPO coverage, his company completed around 50 different operations between acquisitions, financing and offerings with a total value of £ 4.8 billion in 7 years – ending last year 2021 , including 5 foreign transactions in the UAE and Saudi Arabia.

He pointed out that the activity of promoting and covering subscriptions is intended to continue his plan during the current year by acquiring more transactions in its various forms.

£ 550 million, the company’s current investments in two companies, including “Rosti for Freezers”

At the level of the direct investment arm, he said that since 2013 6 companies have been invested, which explains that 4 companies have been abandoned, while the presence in two companies “Rosti for Freezers” and another operating in the field of information technology, remains, with investments for the two companies amounting to £ 550 million.

He added that his company intends to increase its investments to one billion pounds during the current year by pumping 450 million new ones through a group of companies.

He pointed out that Catalyst Partners is looking at a number of new acquisition opportunities during the current year, either through its subsidiary fund or through the parent entity.

Regarding the asset management arm, he explained that the volume of assets under his umbrella is currently around £ 5 billion, in favor of 14 diversified funds managed by the company.

He pointed out that Catalyst intends to increase these assets to reach more than 6.5 billion pounds, and to acquire the management of 3 new funds, bringing the total managed under the umbrella of the branch to approximately 17 funds.

As for the subsidiary portfolio management company, Abdel Nabi said it is committed to managing the financial portfolios of investors, and its assets are currently estimated at only around £ 50 million.

He pointed out that there are aspirations to increase the size of its assets during the year, and explains that this activity is currently not at its best.

It aims to double its portfolio of financial leasing and factoring activities to reach $ 60 million

Regarding the performance of the non-bank financial sector, he explained that the company’s portfolio in terms of financial leasing and factorization activities currently stands at about $ 30 million, and the company plans to double that by the end of this year to $ 60 million to reach.

He pointed out that Catalyst Partners recently added the brokerage firm as a first step in creating an integrated platform for the non-bank financial field, explaining that there are goals to expand the company’s activity and the volume of to double its operations.

He added that joint ventures in the field of insurance brokerage were started by the company for Catalyst clients.

It is noteworthy that at the end of last January, Catalyst announced the completion of its acquisition of approximately 25% of the shares of Public Insurance Brokerage Company. This partnership aims to add a new activity to its activities, in addition to non-bank financial activities. , direct investment in medium and small family businesses and entrepreneurship. .

Reliance Logistics recently announced that it has acquired a portion of the capital from Catalyst Partners Holding, as part of its expansion plan to provide innovative financing services to its clients, invest in value-added companies for its core business and enter the digital field. platforms, especially logistics and finance. .

Regarding the Catalyst Capital Egypt fund, Abdel Naby said the launch of the fund is one of the most important steps the company completed at the beginning of this year, as it is the first development fund for influential investment in the Middle East and North is. Africa.

Abdel Nabi added that the total target size of the fund is up to one billion pounds, and this will be raised through two phases for the first subscription: this has already taken place with a value of 450 million pounds, and another targeted before the end of this year at £ 550 million.

Al-Mal recently announced that the Catalyst Capital Egypt fund plans to invest around £ 300 million during the current year, provided that this return will be directed to 5 small and medium-sized companies, and it will be managed from the proceeds of the first entry, which amounted to about 450 million.

A few days ago, Catalyst Partners Holding celebrated the launch of the first influential investment fund in the Middle East and North Africa, established under the rules of the Egyptian Financial Supervisory Authority, with a total capital of one billion pounds.

The shareholders of the fund are represented in the first entry stage in the Insurance Management Company, Misr Life Insurance, the Misr Fund for Finance and Investment, Banque du Caire, the Post Investment Company of the Egyptian Post Authority, and Attijariwafa.

Abdelnabi said the second subscription phase would include a new group of financial authorities, in addition to the shareholders of the first phase, explaining that all the current events in the local market regarding the increase in interest rates and the depreciation of the pound are assumed to have a positive impact on the performance of the company, specifically the new fund.

He attributes this to the decline in the value of assets and entities operating in the local market, and the high interest rates can be an obstacle for some companies to obtain financing for expansion, forcing them to move to any other way of to seek funding.

It is noteworthy that the Central Bank of Egypt recently approved raising interest rates by 1% at an extraordinary meeting, and at the same time the value of the pound fell against the dollar.

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