From its very first venture, Compass Capital has demonstrated success, outperforming the market over a challenging period for the equities sector.
In March 2017, Compass, along with a group of investors, acquired a stake in CI Capital from the Commercial International Bank (CIB), one of Egypt’s top investment banks. CI Capital serves leading local, regional and global institutions as well as high net worth investors. Compass Capital, along with management, developed strategic initiatives aimed at growing the bank’s existing platform in a direction that realizes its full potential. Compass successfully completed a partial exit of its investment in CI Capital through an initial public offering (IPO) on the Egyptian Exchange (EGX) that was more than 29.5x oversubscribed in the retail offering and 6.1x in the international offering.
Beltone Financial Holding
In 2012, Compass completed the acquisition of c. 20% stake in Beltone Financial Holding, a top-tier investment bank, as well as 51% of Beltone Brokerage. During the course of Compass’s investment, Beltone reversed net losses of EGP 107 million, turning to profitability in just eight months following the acquisition. It fulfilled its strategy to divest in non-core assets, streamline costs, and focus on new products and asset within each respective division. A full exit was completed in November 2015, with Beltone’s market capitalization grew by 3.75X over the three and a half-year investment period.
Beltone Information Technology
In 2012, Compass acquired a 51% stake of Beltone Information Technology S.A.E, the holding company that owns all the sales and trading companies of Beltone Financial Holding. 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 desk was created and become to be the largest non-bank fixed income platform 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. A full exit was completed in 2015.