GlobalCorp: A Case Study

About GlobalCorp for Financial Services

A Transformation in Support of Sustainable Economic Growth

Client Overview: GlobalCorp for Financial Services

Founded by Hatem Samir in 2015, the GlobalCorp for Financial Services (GlobalCorp) is an on-banking financial institution in Egypt, providing financing solutions to diverse businesses, including small, midcap companies, and large corporations as well as consumers.

Mr. Samir is a highly experienced leasing expert with a vast knowledge of the financial sector, gained through an impressive career spanning over 25 years across several countries such as the United States, Tunisia, Saudi Arabia, and Egypt.

Leveraging this deep experience in the financial industry, GlobalCorp’s financing solutions extend across various sectors, including real estate, transportation, healthcare, education, and more, offering a comprehensive range of leasing structures supported by distinct financing arrangements.

GlobalCorp’s strategic approach and versatility have positioned it as a key player in the non-banking financial sector.

From financial and operating leases to factoring, and structured finance solutions, GlobalCorp’s services are aimed at assisting clients in realizing their business objectives and fostering sustainable growth through an alternative financing avenue.

With a sound strategy, customer-centric mindset, and a comprehensive portfolio of products and services, GlobalCorp continues to be the financial partner and advisor to its clients, helping them to grow their business and survive in this fast-paced world.

Driving Impact Through High Performance

Ezdehar saw a prime opportunity in GlobalCorp. The company’s rapid ascension to the top ten list of non-banking financial services companies in just a few years, coupled with an experienced management team, strong relationships with banks, and a low default rate, presented an attractive investment. Furthermore, the under-penetration of credit in Egypt compared to other emerging markets pointed at significant growth potential.

Thus, Ezdehar devised a strategy to transform GlobalCorp from a leasing player to a fully-fledged non-banking financial institution, introducing services such as factoring and vendor financing to capitalize on untapped opportunities. By the end of Ezdehar’s holding period of GlobalCorp, the company had launched consumer financing product targeting the growing spending needs of Egypt’s middle class.

Today, GlobalCorp is one of the fastest growing leasing companies with EGP 10 billion of cumulative originations since its inspection, as well as having the largest diversified leasing portfolio with over 800 active leasing contracts covering 30 industries.

Building a Legacy in the Non-Financial Banking Sector

Ezdehar invested in GlobalCorp in December 2017, taking a 60% ownership stake, and successfully exited the investment in the summer of 2022. During this period, Ezdehar and GlobalCorp succeeded in enhancing the company’s corporate governance framework; expanded its network and business development activities; created a program management office tasked with the development of new products; improved strategic, financial, and risk decision making processes.

In terms of growth, Ezdehar’s contribution to GlobalCorp’s expansion is evident in terms of the company’s exorbitant growth rates. From Ezdehar’s time of investment till its exit in 2022, GlobalCorp has seen an impressive growth in its portfolio by 3.17%. This demonstrates a close to threefold growth in US$ and a quadruple increase in EGP terms.

Initially, GlobalCorp was solely focused on leasing as a product. There was a need for diversification to avoid overexposure and tap into multiple opportunities, such as leasing, factoring, real estate financing/asset management, consumer financing.

Ezdehar’s approach to GlobalCorp was not just defined by financial growth and product diversification, but also by a keen focus on the organization’s overall structure and culture. GlobalCorp underwent a holistic transformation, with Ezdehar ushering in organizational improvements. Recognizing the power of a strong, diverse, and empowered workforce, Ezdehar supported GlobalCorp in the implementation of measures that fostered equality, encouraged diversity, and promoted the empowerment of its employees. By enhancing the company’s structure and nurturing an inclusive workplace, Ezdehar ensured GlobalCorp not only thrived financially, but also socially and culturally.

Finally, Ezdehar contributed to the formation of a Board of Directors experts and senior management team fit to transform GlobalCorp into the institution it has become.

This all-encompassing growth trajectory sets a bright future for GlobalCorp. By the end of 2022, GlobalCorp had introduced factoring, vendor financing, and consumer financing services to diversify its product portfolio. Additionally, a corporate development function was set up to scale up operations, and an employee stock option plan was introduced to retain and motivate the management team. With careful screening, high-potential employees were enrolled in a leadership academy, and the sales operation was improved by assigning risk ratings to industries and capping sales limits per sector.

Focus on responsible lending principles were ingrained in how GlobalCorp does business and appointing the company’s Chief Risk Officer as its ESG Officer helped ensure commitment to the integration of ESG principles and sound E&S management practices across the entire value chain. GlobalCorp succeeded in developing and effectively implementing an internal Environmental, Social and Governance (ESG) policy and environmental and social (E&S) risk management system that integrated E&S criteria into its screening, due diligence, monitoring, and reporting procedures.

These strategic interventions allowed GlobalCorp to differentiate its offerings, avoid overexposure to a single sector, and continue on a robust growth trajectory.

Leasing Factoring Asset Management Consumer Financing

Today, GlobalCorp is one of the fastest growing leasing companies with 10 billions of cumulative originations since its inspection, as well as having the largest diversified leasing portfolio with over 800 active leasing contracts covering 30 industries.