Creative Investments Holding targets heritage food brand after USD 20 mn first close

The first target of the newly born Creative Investments Holding is potentially a heritage food brand. “A brand with history, an authentic DNA, and a story that reflects our culture — you can then scale it, optimize it, institutionalize it, and expand it regionally and globally,” Founder and Leo Equities CEO Mohamed Talaat Khalifa (LinkedIn) tells EnterpriseAM, without disclosing further details on the brand. The ADGM-based vehicle just closed a USD 20 mn founding round en route to a USD 50 mn target, with an IPO in sight, according to a statement (pdf) out yesterday. The commitments are still subject to definitive agreements.

The full targets: The platform is eyeing “controlling and strategic” stakes in food, hospitality, fashion, and lifestyle businesses primarily in Egypt and the broader MENA region. Properties are also being evaluated for the platform’s first boutique hotel concept Casa Leo, where Khalifa, a former Managing Director of EGX-listed Concrete Fashion Group, says the focus is the experience rather than the asset.

Who is behind it: The platform is being set up through Leo Equities, the investment arm of Khalifa which has DAFZA and Milan presence. Leo Equities describes itself as a “House of Brands and Experiences” across creative and niche industries with a presence in Abu Dhabi and Cairo alongside Italy. Khalifa is running the platform with Heba Makhlouf (LinkedIn), former CIO of EGX-listed developer Sodic.

The pitch: “Money will always be funding, culture is the real capital,” Khalifa tells EnterpriseAM. For him, what the region has lacked is a patient institutional owner willing to take authentic regional businesses and turn them into international champions.

Who sits on the cap table: Founding investors include Onsi Naguib Sawiris, Ali Abubakr, and the Egypt’s Micro, Small and Medium Enterprises Development Agency (MSMEDA). A government SME agency co-investing alongside private money in a vehicle whose stated ambition is luxury and lifestyle brands is not a combination we see often. Having an institution alongside individual investors and family offices helps with governance and institutionalizing the company, Khalifa tells us.

The split across investors stays confidential until the definitive agreements are signed, Khalifa said, and the platform will go after a wider group of investors in subsequent rounds on a timeline that hasn’t been set yet. The number of acquisitions the first USD 20 mn will cover is also open, and the investment strategy and how concentrated the portfolio will be are still being worked out, he tells us.

On picking a home for the IPO: Creative Investments Holding is eyeing Abu Dhabi, Riyadh, or London as potential listing venues within five to seven years, according to the release. The platform is regional rather than Egyptian, Khalifa says, pointing to businesses worth buying in Saudi Arabia, the Levant, and the UAE alongside Egypt. Where it ultimately lists will come down to where capital and investor access make the most sense at the time, he adds.