unities and advice on Egypt's economic and financial climate. The company also gives general support to HORUS's local office. Most of HORUS's investments were made in pre-IPO situations, but where an IPO was imminent. Accordingly, viable exit scenarios for the investments have been visualized. By the end of 1998, HORUS had made 11 investments with a total value of US$25 million. IRR on these investments is estimated at over 30%. Private investment funds are sure to be a critical factor in the region's economic development in the next century, and through involvement in ABIC and HORUS, EFG-Hermes Private Equity has already established a firm foothold in the field at a critical initial stage.4) Fund ManagementFund management is an essential service provided by EFG-Hermes. Being a fund manager means that EFG-Hermes manages the money of other organizations. In funds, the money that EFG-Hermes manages does not belong to one individual, but instead to a group of people. An example would be managing the money of a bank (the bank does not own the money, but it just collected money from people). So EFG-Hermes takes this fund and invests it mainly by purchasing stocks of listed companies. Procedure :First promoter (the bank for example) sits with the fund manager (EFG-Hermes) to write a prospectus. This prospectus is like an agreement on some broad regulations EFG-Hermes must follow in investing the fund. The prospectus follows the guidelines of law. It is then submitted to the CMA (Capital Market Authority) for approval. Then it is published in two major newspapers. After that, the subscription period begins. Approaches :There are two approaches for making investment plans; top down and bottom up. By using the top down the firm would first look at well performing countries. Then after choosing the country look at the different fields in this country, then look at a certain company. The bottom up approach works the other way around; the firm woul...
