Financial Supervision Authority: Subscription open for investment fund to restructure struggling factories... Sunday

Cairo – Nadeh Imam

In the context of the General Authority for Financial Supervision’s (GAFS) continuous support for vital economic sectors, and in continuation of its efforts to back the industrial sector through non-banking financial products under its supervision—pursuant to presidential directives and the “Egypt 2030” vision—the Authority, chaired by Dr. Islam Azam, has approved the licensing of the Restructuring Fund for Distressed Factories (Fund No. 1033) and opened the subscription window for its documents starting on Sunday, October 4, 2026.

The fund’s documents will be offered in accordance with the detailed conditions specified in the information memorandum approved by the Authority. The offering comprises one billion documents, including those subscribed by the fund’s founder, with a nominal value of one Egyptian pound per document and a total value of one billion Egyptian pounds.

The new fund was established in accordance with the provisions of Capital Market Law No. 95 of 1992, its executive regulations, and their amendments, as well as complementary decisions. It targets a size of one billion Egyptian pounds, to be paid in installments based on available investment opportunities consistent with the criteria disclosed in the information memorandum. Key among these is the investment manager’s obligation, when selecting target companies, to adhere to a set of quantitative and qualitative criteria that ensure the selection of companies capable of being rehabilitated and achieving adequate returns after restructuring, as determined by the feasibility study prepared by the investment manager.

The Chairman of the General Authority for Financial Supervision emphasized that the launch of the Restructuring Fund for Distressed Factories is the result of joint efforts and close cooperation between the Authority, relevant authorities, and the fund’s stakeholders. This initiative aims to implement the state’s plan to rescue industrial companies and distressed factories, thereby leveraging their production capacities and existing assets as a fundamental step toward revitalizing the industrial sector across all its activities and supporting its sustainability.

He clarified that the Authority continues its approach of utilizing non-banking financial products to strengthen sectors of vital importance to the national economy, while also expanding and deepening the activities under its supervision to enhance their contribution to the prosperity of the national economy. He noted that the continuous development of the regulatory framework for open and closed investment funds has positively impacted the business environment, leading to the growth of safe investment pathways under the full supervision of the Authority.

The Restructuring Fund for Distressed Factories was established as a closed private equity investment fund. Its documents are offered through a private placement restricted to qualified financial institutions, entities, and legal persons (public and private) in accordance with the regulations issued by the Board of Directors of the General Authority for Financial Supervision in Decision No. 48 of 2019. Its investments are managed by CA Capital for Fund and Investment Management and Venture Capital.

The fund aims to directly invest in the shares and stakes of distressed companies operating in the food industry, engineering industries, chemical industries, textiles, ready-made garments, pharmaceuticals, and building materials industries. The objective is to support the restructuring of these companies and develop their operational and financial policies.

The fund plays a necessary role in ensuring the implementation of recovery plans and achieving operational and restructuring targets for industrial companies and distressed factories that have financial obligations they cannot meet, with accumulated accrued returns, yet still possess a product and market share, retain their core economic viability, and can be rescued through a well-considered financial and operational restructuring.

The fund exercises this role in coordination with the executive administrations of these distressed companies and factories, as determined by the fund’s dedicated Investment Committee. The investment manager may also form a technical committee comprising members with expertise in the industrial sector relevant to the target company’s field of activity. This composition varies depending on the nature of the investment opportunity and the targeted industrial sector.

Investment opportunities are evaluated both before acquisition and before exit. Additionally, the fund’s net asset value is assessed twice a year, utilizing independent financial consultants registered with the Authority and in accordance with the financial evaluation standards specified in the regulatory decisions issued by the Authority.