The Egyptian Private Equity Association (EPEA) was recently launched to serve as an entity advocating a constructive regulatory environment for private equity in Egypt. Basel Hussein Roshdy, general manager of Nile Capital, a leading private equity firm and a founding member of the Egyptian Private Equity Association spoke to Nesma Nowar about the association's aims and the challenges facing private equity industry in Egypt. What are the EPEA's aims? The EPEA aims at enhancing the standards and practices of the private equity industry in Egypt. We aim at implementing the industry's best practices through practice and awareness. We will also work on networking and linking with other private equity associations worldwide. The association also aims at doing some sort of lobbying between the private equity industry and the government in terms of regulations, laws and the legislative environment. We want to create a better private equity environment in Egypt. What are the main challenges facing private equity in Egypt? A number of challenges face private equity in Egypt, most notably the difficulty of establishing a private equity firm due to complicated legislations; however these legislations are being amended now. Egypt also lacks a lot of factors that are necessary for private equity industry such as venture capital, a type of private equity capital typically provided for early-stage, high-potential, growth companies, angel investors, individuals who provide capital for a business start-up, and supporting services including banks, consultancy and advisors. We also lack the availability of private equity professionals and good entrepreneurs that can carry out business, in addition to the lack of training and professional awareness. Furthermore working in private equity has its own challenges and risks. Private equity is an industry of a long term nature which naturally includes risks regarding management and operating business. It is also observable that we lack the desire to have private equity investors as most businesses in Egypt are family oriented that refuse to enter the private equity industry. How many firms does the EPEA comprise? The EPEA does not only include private equity firms, but also private equity experts and professionals. The association includes leading private equity firms like Citadel Capital, Abraaj Capital, Actis, as well as investment banks including Beltone Financial, EFG-Hermes, CI Capital, in addition to more than 40 founding members and experts.
