Berytech Fund invests in
Capital Banking Solutions

Company to expand to the Gulf

Berytech Fund II has acquired a stake in software developer Capital Banking Solutions (CBS) for $5 million.

Both parties declined to disclose the new shareholding distribution. Sources close to the deal estimated Berytech’s share to be under 20 percent.

Samer Hanna, Chairman of CBS, said that the proceeds will be used for geographical expansion as well as the creation of new products.

“We will beef up our team in order to grow faster,” he said. The company plans to enter the Gulf region. It is also in the process of entering the Greek market, and plans to expand to oil-rich countries in Eastern Europe, according to Hanna.

CBS plans to expand its investment in the digital industry as it believes in the full digitalization of banking software products, Hanna said. The company is investing in a product which will easily integrate with products created by fintech developers and other startups and players in this sector, according to Hanna.

Maroun Chammas, Chairman of Berytech Fund II, and Paul Chucrallah, the fund’s Managing Director, will join CBS’ board of directors.

CBS was established as an offshore company in 2007 with a share capital of $220,000. It grew rapidly over the years. The company currently sells its products to more than 250 banks and financial institutions across 63 countries. CBS has a workforce of 250 professionals in offices in Beirut, Paris, Monaco, Geneva, New York, Miami and Abidjan. Its portfolio includes four major products. One of these products, ‘CapitalBanker’ is an integrated, modular, and cloud-ready solution that optimizes core banking services. ‘CapitalPrivate’ is an integrated solution for private banking and wealth management businesses. ‘CapitalCompliance’ is used for the prevention of financial crimes, risk mitigation, and compliance with regulatory and financial reporting requirements. The fourth product is ‘CapitalDigital’, an omni-channel digital solution for bank customers.

This acquisition brings the total investment of Berytech Fund II to $34 million across 19 companies. The venture capital fund, which has a capital of $51 million, invests in local small and medium-sized enterprises (SMEs) operating in the knowledge economy, which benefit from the Central Bank’s Circular 331. It targets startups with high growth potential and human added value. They must usually be at the acceleration phase and able to scale up. It has received its funds from local banks under Circular 331, which encourages investment in knowledge and creative enterprises.