What’s in the pipeline for Ezdehar? Private equity firm Ezdehar Management, which currently has USD 300 mn in assets under management (AUM), is closing out its first fund, nearly finished deploying its second, and gearing up to start raising a third by mid-2026, CEO Emad Barsoum (LinkedIn) told EnterpriseAM. We sat down with Barsoum to unpack Ezdehar’s investment playbook, how it chooses and scales portfolio companies, its approach to exits, the hunt for local LPs, and how Egypt’s macro climate is reshaping the private equity scene.

How Ezdehar invests: Ezdehar’s model is built around taking mid-sized Egyptian companies and turning them into market leaders, but unlike most local PE players, it leans heavily on operational involvement. “We’re quite different from many other PE firms,” Barsoum said, adding that Ezdehar often embeds “two or three team members inside the newly-acquired company for three to six months” to overhaul systems, improve governance, and accelerate growth. That approach has already reshaped companies like Zahran Market, where expansion shifted “from opening one store a year to five or seven annually,” and DalyDress, which is preparing to expand into the GCC and Europe through e-commerce.

Control matters: Barsoum says minority stakes rarely work in Egypt because “if you own just 20-30%, the founder still runs the show,” which in some instances will make it harder to execute growth strategies, invest in systems, or hire the right talent. That’s why Ezdehar structured Fund II to secure control wherever possible, taking 100% ownership of Zahran Market, super-majority stakes in DalyDress and Kemet, and voting control at Naturale. Even in transactions where Ezdehar doesn’t hold a majority, it ensures founder alignment through agreements that lock in decision-making rights.

What Ezdehar looks for: The firm focuses on companies where leadership is willing to professionalize, open up to outside talent, and align on long-term strategy. “The founder or management team needs to be open to hiring, criticism, and collaboration,” Barsoum said. Export potential is also now non-negotiable. “Exports are essential today. If a company isn’t earning in FCY, devaluation can kill your investment.” Ezdehar also looks for models that can scale quickly across products or markets to compound growth.

The funds so far: Fund I (USD 85 mn) is fully invested and nearly exited, with stakes in Rich Food, Eagle Chemicals, and Alunile expected to be sold within 6-12 months. Fund II (USD 180 mn, raised in 2021) is 70% deployed across six companies — Zahran Market, DalyDress, Kemet, Naturale, Yes-Pac, and Yodawy — and Ezdehar expects to finish deploying it by mid-2026. As for Fund III, Barsoum said the strategy is still evolving. “We’re debating different approaches. Maybe we’ll go outside Egypt or use different instruments, but we won’t just copy Funds I and II.”

ADOPTING A ROLL-UP STRATEGY-

Consumer brands and DalyDress: Ezdehar is doubling down on a roll-up play in the consumer brands, starting with modest-fashion label DalyDress. “Egypt doesn’t have an institutional player that owns several local brands,” Barsoum said. Barsoum’s vision is to consolidate several of these local brands over the next 3–5 years into a larger, institutionally managed conglomerate, similar in spirit to multinational players like Zara or H&M.

The model is simple: Acquire small, family-run brands and consolidate them into a platform that unlocks economies of scale. The strategy is already drawing interest — “once we bought into DalyDress, three or four other brands called us wanting to talk,” he said. Scale also transforms hiring: “It’s very hard to hire a top CEO for an EGP 1-2 bn company, but at EGP 5-10 bn, the kind of talent you can attract completely changes.”

CHALLENGES FACING FAMILY-RUN BUSINESSES –

Family-run companies struggle to move from legacy to growth: Barsoum discussed the challenges faced by many family-run businesses in Egypt, noting that while they often experience strong growth under the first generation, they tend to plateau and eventually decline. This stagnation, he explained, is largely due to a lack of scalable systems, poor organization, and an inability to attract top talent.

Why the shortage of top talent is in family-run businesses: He pointed out that many professional executives are hesitant to join such companies because there’s typically no clear path for growth or alignment of interests, while corporate leaders seek development and investment, family owners might focus more on personal benefits, like hiring relatives or extracting dividends. Barsoum also acknowledged the ongoing talent drain to the Gulf, where better compensation packages are drawing Egypt’s brightest minds.

There’s a disconnect between valuations perceived by founder-led companies and market realities: Barsoum explained that his team had explored potential acquisitions with several well-known Egyptian retail businesses, including Alfa Market, Gourmet, and Awlad Ragab. However, these efforts did not result in successful transactions, primarily due to significant gaps between the owners’ perceived valuations and the actual market realities. In particular, Alfa Market was in a distressed state, making negotiations especially difficult. This disconnect, he noted, is a common challenge when negotiating with founder-led companies, where emotional attachment or legacy often inflates perceived value.

NAVIGATING EXIT CHALLENGES-

Tough road to exits: Barsoum painted a somber picture of the current exit environment, warning that Egypt’s weak capital markets and macro headwinds are making it harder for private equity firms to cashout. He pointed to low liquidity on the EGX, which constrains PE’s ability to monetize investments. IPOs on the local exchange remain difficult, while taking portfolio companies to the GCC is “not an easy sell” for purely Egyptian companies. “Unless you have a presence there it’s very difficult,” Barsoum said, adding that strategic sales are the more realistic route in the current cycle.

A key bottleneck is the absence of domestic institutional capital. “When we pitch overseas, the first question is: Who is investing from Egypt?” Without buy-in from domestic pension funds, ins. companies, and big local banks, he said, exit options will remain scarce. Ezdehar, he added, is reassessing its strategy ahead of launching its third fund, exploring regional plays and new instruments.

Where are the local LPs? In risk-free T-bills. Ezdehar tried raising an EGP-denominated fund from local institutions but failed to get commitments. Barsoum said the challenge comes down to two factors: “Most institutions have no experience investing in equity funds, and at the same time, they’re earning 25% risk-free on Treasury bills — so PE just doesn’t compete.”

His proposed fix: A sovereign-backed fund-of-funds like the UAE’s to unlock institutional capital. “Maybe the sovereign fund needs to put EGP 10-50 bn into fund-of-funds instruments. That would stimulate PE, VC, and angel funds and bring institutional money into the private market.”

Ezdehar made successful exits from Global Corp, Dsquares, Family Corporation, and a partial exit from Alunile.

The outlook: While macro pressures remain, Barsoum sees potential in exports, consolidation plays, and operationally driven growth strategies that can turn Egypt’s mid-sized businesses into scalable regional leaders.

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