EuroMena Fund sells stake
in Chedid Capital Holding
Company planning expansion outside the Middle East
The EuroMena Fund announced yesterday that it has exited from regional insurance player Chedid Capital Holding (CCH) and sold its stake in the company to Saudi Al Rashed Group’s affiliate company, Rimco. The deal was closed last month at an investment return of 2.4x money multiple, as announced. In 2008, the fund invested $6 million in CCH, which makes the stake sold at $14 million.
CCH operates insurance and reinsurance companies in nine countries across Europe, the Middle East, and Africa and has extended its scope and operations to more than 35 countries over three continents. With the backing of the EuroMena Fund, CCH has successfully set up eight subsidiaries covering international markets including Sub-Saharan Africa. In July 2015, the CCH reinsurance brokerage arm was certified as a Lloyd’s registered broker.
“The EuroMena involvement has contributed to CCH’s corporate governance best practices and has strengthened the group’s strategic planning capacities,” said Farid Chedid, Founder and Chairman of CCH. He said that they are eyeing expansion across various countries outside the Middle East, but that this will be announced at a later stage.
The EuroMena Fund Management Team is eyeing to close three exits of its remaining investments in EuroMena I by February 2016. These are IT software development company ITWorx, agro-business leader Wadi Holding, and packaging and paper production player Wataniya.
The EuroMena Fund Management Team has raised more than $300 million to date from prominent investors and has closed more than 20 investments and divestments. EuroMena III, its latest fund, had its first closing in October 2014 for a total consideration of $100 million, backed by commitments of top tier institutions, High Net Worth Individuals, and family offices. Targeting a final size of $200 million by October 2015, the EuroMena Fund Management Team has been actively sourcing attractive transactions in the region and is expecting to close around three transactions by the end of this year in North Africa, West Africa, and the Levant.
Date Posted: Jul 22, 2015