la Finalep prévoit en 2025 des cessions de ses participations via la Bourse
Summary of the Activity of Finalep in Algerian Private Equity
La Financière algérienne de participation (Finalep) is set to take a significant step in the Algerian capital investment landscape by planning to divest its shares in the companies it has invested in through initial public offerings (IPOs). This anticipated action marks a pioneering move in Algeria’s financial market, as stated by Finalep’s General Director, Saïd Si Amara.
Objectives and Operations
Finalep aims to sell its stakes in companies it has supported, primarily through IPOs, to realize returns on investment and free up resources for new projects. The company focuses on raising awareness among economic stakeholders about capital investment, which serves as an alternative funding method for small and medium-sized enterprises (SMEs).
The capital investment mechanism is part of a national support framework for SMEs and is executed by five companies, including Finalep. It allows for the acquisition of equity in businesses, mainly SMEs, for a duration of 5 to 7 years. Presently, Finalep has a portfolio comprising 44 SMEs across various provinces. By 2025, the company aims to initiate divestment operations for companies that have reached a satisfactory level of maturity.
Divestment activities are viewed as critical performance indicators for capital investment firms. By the end of 2023, Finalep maintained 55.42% of the total value of investments in the national capital investment market and accounted for 24.72% of the total number of companies financed through this method.
Growth and Performance
The continuous growth in Finalep’s results since 2021 can be attributed to the overall performance of the companies within its portfolio, which operate across diverse, profitable sectors with high growth potential. The portfolio is segmented into three categories: active companies, companies entering the operational phase, and established entities. Many companies have improved their operations, leading to higher profitability indicators, a success resulting from tailored support policies that consider each company’s specific circumstances.
Future Plans and Developments
Looking ahead, Finalep is committed to enhancing its market position while aligning with public economic priorities. It plans to undertake new projects that align with national strategic orientations, emphasizing portfolio diversification, exploring new sectors, and supporting companies at various developmental stages.
As part of this strategy, Finalep is working on actions to promote both the stock market and capital investment as alternative funding options for SMEs. Si Amara mentioned that preparations are underway for a new insurance product aimed specifically at capital investment firms, designed to cover potential losses during divestment. Consultations with the Union of Algerian Insurance and Reinsurance Companies (UAR) and various insurance firms are already in progress to establish this risk coverage.
Furthermore, Finalep plans to develop a more tailored training program for capital investment, in collaboration with a specialized finance training institute, which has already started implementing actions to make this initiative a reality.
The Broader Landscape of Capital Investment in Algeria
In addition to Finalep, which has a capital of 3.2 billion DA, Algeria is home to four other public capital investment firms: El-Djazaïr Istithmar, the Algerian Investment Fund (AIF), ICOSIA Capital Spa (a subsidiary of Madar Holding), and the Algerian Start-up Fund (ASF). These firms are crucial players in the field, contributing to the overall health and dynamism of the capital investment sector in Algeria.
Through these efforts, Finalep is poised to not only boost its own performance but also to enhance the overall investment landscape in Algeria, paving the way for more dynamic engagements between capital investors and SMEs.
