Illustrative image of an investment firm employee.
The amendments stipulated that a management contract should be signed between the company and the managing partner including his or her powers and the powers of the board of directors.
Other clauses in the 113/2018 decree have not been changed, including reserving a minimum of 0.5 percent share for the managing partner, and offering total capital (except for the managing partner's stake) to qualified investors, which include individuals, legal entities, and banking and non-banking financial institutions.
The unamended clauses also include mandating private equity firms to invest in securities whether listed or nonlisted in the Egyptian Exchange.
A qualified investor, also commonly referred to as an accredited investor, is an individual or other entity that is legally permitted to invest in hedge funds, venture capital funds, private equity offerings, and other private placements.
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies.
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