to be a great asset in other areas of the company's business. In textbook fashion, brokerage distribution links has enhanced the placement capabilities of the investment banking division, while the brokerage division's placement prowess has infused investment banking clients with confidence in the firm's ability to close deals. As EFG-Hermes continues to expand its range of fixed income products, the brokerage distribution base can be expected to grow further. 3)Private EquityPrivate Equity is a service provided by EFG-Hermes in which it invests its own money in companies that are still emerging and not listed. In recent years, the Egyptian economy has developed sufficiently to provide increasing opportunities for long-term investment in the growing private sector. EFG-Hermes has promoted the directing of resources towards medium- to long-term investments in successful, well-managed privately held Egyptian companies. The company has played an instrumental role in the establishment--based on money from institutional and private investors in Egypt and the Middle East--of two private equity investment vehicles:Arab Investment Company (ABIC) Horus Private Equity Fund (HORUS)ABIC is an Egyptian shareholding company founded by the Arab Bank and EFG-Hermes. ABIC's share capital is LE250 million, fully paid, and it has 120 shareholders representing most Arab countries. In 1998, ABIC pursued a very active investment program, conducting 13 investments with a total value of LE239 million. Estimated returns, based on conservative valuations, gave investors an IRR of over 30%. ABIC's holdings represent substantial minority stakes, ensuring board representation and an active role in the development of its investments. HORUS is an offshore limited partnership with committed capital of US$54 million (US$35 million paid). EFG-Hermes is one of the general partners of HORUS, and also serves as the fund's advisor, providing information on investment opport...
