The Fund will be managed by Beltone Private Equity (BPE) in partnership with SIGEFI Private Equity of Siparex Group in France (Siparex). BPE is the private equity arm of Beltone Financial, a Cairo-based diversified financial services company. Siparex has over thirty years of private equity experience and is one of France’s preeminent private equity groups and a leader in the middle market segment.

It is proposed that IFC invest up to $20 million in the Fund.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

Beltone Egypt is a sub-fund of Beltone MidCap Fund, a specialized investment fund (SIF) incorporated in Luxembourg under the form of a limited partnership by shares (SCA) as a société d’investissement a capital variable (SICAV). The fund management team will be based in Cairo, Egypt. The Fund will invest in companies incorporated and operational in Egypt.

Project Development Impact:

- Private sector development: The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.

- Adoption of best practices for corporate governance and environmental standards: The Fund will adopt international best practices for environmental and social risk assessment and management, as well as transparency and corporate governance, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.

- Support for SMEs: The Fund is expected to allocate a substantial part of its capital for SMEs.

- Employment: It will have a positive role on employment at a time when the global economic crisis may hurt development and employment in Egypt.

IFC’s role includes:

- Fund Structuring: IFC will work closely with the Manager to ensure the Fund’s structure and terms are in line with IFC and international standards.

- Governance of the Fund: IFC will seek to play a governance role through participation on the Fund’s governing structures.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:

- The IFC FI Exclusion List and
- The applicable National Environmental and Social Laws and regulations and/or
- The IFC Performance Standards

IFC will also review, if required, the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.

The Fund Manager will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements;
- Take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC.