Egypt-based HC Securities & Investment has received a positive response from investors for its newly-established fund Misr al-Mostaqbal, set up to try to boost the Egyptian Exchange (EE).

The fund opened on 29 May and is open-ended. So far, more than £E50m ($8.4m) has been raised. Most of the money is from institutional investors, both in Egypt and in the GCC. Interest from retail investors was high in January and February, but has since died down after the EE performed better than expected.

“The initial thought behind the fund was to stimulate the Egyptian economy and invest in equities on the Egyptian Exchange straight after it was reopened in March, but the paperwork took longer than expected and now our purpose is just to be another institutional investor,” says Hussein Choucri, chairman & managing director at HC Securities & Investment.

The private equity firm is looking to build up its portfolio over the next three-months, identifying the most suitable companies on the exchange.

“We will target all the sectors, but it will take a while, we do not want to rush and invest money straight away,” says Choucri.

The company is aiming for a return of 15-20 per cent for its investors.