CAIRO: Two of Egypt's major investment firms this week announced an agreement that will create ties between them and afford each the opportunity to expand their respective market shares. Pioneers Holdings for Financial Investments has purchased a 20 percent stake in Concord International Investments LP. The total deal, announced Concord, was valued at $24 million. A statement released by both parties heralded the agreement as "a first step in a strategic alliance between the two groups on the domestic, regional and international levels. Pioneers appeared to be equally thrilled at the new partnership. In a statement to Daily News Egypt, Khaled El Tayeb, senior vice president at Pioneers, said, "It's believed that Concord International Investment Company is one of the leading companies in the management of investment funds and wealth of individuals, families and organizations. Concord is a leading financial firm, investing for businesses and individuals in securities and direct investments. Its investment options include mutual funds, off shore listed closed end funds, and private equity funds. Directly and through its affiliates, Concord's Cairo, Tokyo and New York offices manage assets of around $3.4 billion worldwide, approximately $2.8 billion of which are currently invested in Egyptian securities. Based in the United States, Concord was the first internationally to secure a permit allowing it to establish mutual funds in Egypt. Concord was founded in 1988 by Mohamed Younes, who still chairs the company today. Pioneers is a market leader with a vast reach through the Middle East. With over 25 offices in the Middle East and North Africa, it is one of the region's leading investment firms. Pioneers has managed to secure brokerage licenses in countries that rarely dole out international licenses, such as Syria and Saudi Arabia. The two companies' synergies may have played a critical role in advancing this deal. Both deal with individual and institutional investors and both invest heavily in the Middle East. The new partnership, said a joint statement, "is an integral part of the systematic expansion plan by Pioneers Holdings to fulfill the objective of becoming a leading regional financial institution. Pioneers is a relative newcomer to the Egyptian stock exchange, where it began trading in June. It reported LE 265.1 million in consolidated net profit for the first half of 2008.
