3 December 2015 — Compass, a leading private equity firm, signed an agreement to divest its full 51% shareholding stake in Beltone Information Technology for an undisclosed amount to Beltone Financial Holding.
Compass and limited partners completed the acquisition in June 2012 of a stake in Beltone Information Technology from Beltone Financial Holding. Beltone’s ranking improved from third to first according to the brokerage firms ranking report issued by EGX.
“From the onset, we have realized the importance of the sales and trading function and that a full fledge investment bank cannot exist without a distribution arm.” said Shamel Aboul Fadl, Founder and CEO of Compass. “We have felt that the acquisition and exit were timely and offered the right investment both for Compass and Beltone”, he added.
During the course of the investment, , Compass implemented a competitive strategy focusing on new product offerings to the diversified client base. In the short holding period, the fixed income trading was initiated and grew to be the largest non-bank fixed income trader in the Egyptian market. In June 2015, the first exchange traded fund that follows the EGX 30 was launched and the market maker activity was inaugurated.
Compass has successfully deployed significant capital since 2011 despite economic and political headwinds that plagued Egypt at the time. In early 2011, Compass Capital and its limited partners acquired 100% of Rameda Pharmaceuticals (Rameda), embarking on a broad set of strategic initiatives designed to boost Rameda’s financial, operational and management performance and unlock its full value. In 2012, Compass acquired a significant minority stake in Beltone Financial Holding and 51% in Beltone Information Technology.
Compass Capital is a leading private equity firm focusing on value investing. The firm’s multi-disciplinary team focuses on transactions requiring capital flexibility, financial restructuring, and operational turnaround. Compass follows a disciplined investment approach that hinges on defining strategic initiatives, agile implementation of strategy, supporting talented management, and providing required growth capital to drive growth. The company is a principal investor in its own transactions and actively works to ensure that the interests of all stakeholders are aligned in the investments it pursues.