private equity activity, growth and performance in morocco report 2015

1 Le Capital Investissement au Maroc – Année 2014 © 2015 Grant Thornton. All rights reserved.

Private Equity Activity in Morocco:

Growth and Performance Report

Year 2015

March 2016

Summary

© 2016 Grant Thornton Private Equity in Morocco : Growth and Performance – Year 2015 3

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1. Scope & Methodology

2. International and National Economic Context

3. Fund Management Companies

4. Funds Under Management

5. Investments

6. Exits

7. Private Equity Performance

8. Private Equity Economic and Social Impact

9. Forecast 2016

10. Key Figures

11. Annexes

I. Principal deals outside of AMIC’s perimeter

II. Acronyms

III. Glossary


1. SCOPE & METHODOLOGY

Scope

This study includes :

• All fund management companies which are members of AMIC with a local representative office in Morocco

and have a portion of funds to invest dedicated to Morocco

• Funds investing mainly in SMEs and unlisted companies

• Limited Life Funds

• Infrastructure Funds both with greenfield and brownfield investment

• All investment sectors except funds dedicated to real estate and tourism

• Data collection was done via a survey of 22 management companies / 46 funds on a self reporting basis

(including infrastructure funds)



Methodology

CAPITAL RAISED

• The amounts of funds raised only includes the part dedicated to Morocco and the part dedicated to Private

Equity

• Amounts raised by infrastructure funds are analyzed and presented separately

• For transregional funds where the portion dedicated to Morocco has not been communicated, only actual amounts

invested are reported

• The review of statements of certain funds resulted in technical corrections to the amounts raised by year (hence

differences from amounts presented in previous years)

INVESTMENTS

• The amounts invested represent amounts disbursed

• Detailed investment analysis does not include “Large Caps” (transaction over 200 mln MAD) as this new

segment does not currently include a sufficient number of transactions

EXITS AND PERFORMANCE

• Amounts exited are amounts of sales of investments

• IRRs represent gross IRRs upon exit as reported by the funds

• The scope of IRR calculations does not include partial exits or IRRs from investments of less than 1 year

• IRR were weighted by amounts invested

• Losses caused by exceptional events have note been taken into account in the average calculation of IRR

ECONOMIC AND SOCIAL IMPACT

• The CAGR for turnover and employment were weighted by amounts invested



Fund management companies Funds

THE ABRAAJ GROUP

Kantara LP

Aureos Africa Fund

Africa Health Fund

Anaf II

ALMAMED Massinissa

Massinissa Luxembourg

ATLAMED AM Invest Morocco

ATTIJARI INVEST

Agram Invest

Igrane

Moroccan Infrastructure Fund

AZUR PARTNERS Nebetou Fund

BMCI DEVELOPPEMENT BMCI Développement

BROOKSTONE PARTNERS Emerald Fund

MJT Park

CDG CAPITAL INFRASTRUCTURES Inframed

Inframaroc

CDG CAPITAL PRIVATE EQUITY

Accès Capital Atlantique

Sindibad

Cap Mezzanine

Cap Mezzanine II

CAPITAL INVEST

Capital Morocco

Capital North Africa Venture Fund

Capital North Africa Venture Fund II

Fund management companies Funds

CFG CAPITAL CFG Développement

Idraj

ENTREPRISE PARTNERS 3P Fund

FIROGEST Firo

HOLDAGRO Targa

INFRA INVEST Argan Infrastructure Fund

MAROC INVEST

MPEF I

MPEF II

MPEF III

Africinvest I

Africinvest III

MITC CAPITAL Maroc Numeric Fund

MEDITERRANIA CAPITAL PARTNERS Mediterrania Capital I

Mediterrania Capital II

PRIVATE EQUITY INITIATIVES PME Croissance

UPLINE INVESTMENTS

Upline Technologies

Upline Investment Fund

Fonds Moussahama I et II

OIFFA

VALORIS CAPITAL

New funds in 2015 Funds in divestment phase

or divested

Note : Historical data of funds managed by Aureos, Sherpa and Viveris have been

retained.

Summary


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51





5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

Weak global economic growth persists

Two major challenges are present: increasing production and sustaining demand

World Europe Emerging

Markets Morocco

.

2015

2013

2014

Source : International Monetary Fund – Global Outlook January 2016

3.3 3.3 3.1

-0.5

0.8

1.5

4.7 4.4

4.0 4.4

2.6

4.4

Evolution of real GDP growth between 2013 and 2015

[%, 2013-2015]

Comments

In 2015, the global economy continued

to be pressured by weak growth with a

growth rate of 3.1%

Growth in emerging and developing

countries declined, while a modest

recovery continued in Europe with a

growth rate of 1.5% in 2015

In Morocco, economic growth in 2015

benefited from a satisfactory harvest and

reached a rate of 4.4%. However,

forecasts for 2016 are less optimistic

Three major factors continue to

influence the global outlook:

• gradual slowdown of economic activity

in China,

• declining oil and commodities prices

and,

• gradual tightening of monetary policy

in the US

2. INTERNATIONAL AND NATIONAL ECONOMIC CONTEXT


Global growth should reach 3.4% in 2016 and 3.6% in 2017

Historical trends and forecast

[%, 2001-2017 forecasted]

Global growth should reach 3.4% in

2016 and 3.6% in 2017

In emerging and developing markets,

growth should slightly increase from 4% in

2015 to 4.3% in 2016

In Europe, growth is expected to remain

more or less stable in 2016 and 2017, at

around 1.7%

Declining oil prices could further

stimulate demand in oil-importing

countries

For 2016, the IMF has predicted that GDP

growth would reach 4.7% in Morocco. Due

to low rainfall, the HCP lowered this

estimate and anticipates a GDP growth

rate of 1.3%

Comments

Source : International Monetary Fund – Update of main projections

January 2016

- 6%

- 4%

- 2%

0%

2%

4%

6%

8%

10%

16f 17f 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Emerging markets and developing

Morocco

World

Eurozone

5.0 % 4.7%

3.4%

1.7%

4.4%

2.6%

3.3%

0.8%



Morocco

Source: EMPEA, Industry Statistics Year-end 2015

*2014 data were updated in December 2015 by EMPEA

Morocco has, with a Private Equity penetration rate of 0.06% of GDP in 2015, continued to outperform all MENA

region countries since 2013

2015 2014*

1.95

0.06

0.08

MENA Turkey South

Africa

China Sub Saharan

Africa

Brazil India S. Korea USA Israel UK


0.77

1.45

1.59

0.20 0.21 0.13 0.13 0.15

0.12 0.03 0.02

0.77

1.41

0.20

0.31

0.09 0.07 0.10 0.18

0.01 0.03

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

Private Equity penetration rate – capital invested/GDP (%)



Global fundraising has increased steadily over the last 5 years, increasing 11% between 2014 and

2015

Source: Preqin

04 03 02 01 10 09 08 07 06 05 14 13 12 11

220

141

101

208

348

541

653 666

296

228

170

315

431

495

551

+224%

15

[Bln USD, 2001-2015]

Evolution of global amounts raised between 2001 and 2015



Source: Preqin

Distribution of amounts raised worldwide in 2015

North

America

329 Bln $

Europe

140 Bln $

Rest of the

world

23 Bln $

Asia

57 Bln $



In 2015, Morocco recorded a growth rate of 4.4%. However, this rate is expected to significantly decrease in

2016 due to low rainfall and dependence of the Moroccan economy on external factors such as growth in

the Eurozone and the possible rise in oil prices.

[Bln MAD, %, 2011-2015] [%, 2009-2015]

9.2% 9% 8.9% 9.1% 9.1%

[%, 2009-2015]

[Mln MAD, 2009-2015]

[Bln MAD, 2009-2015]

Sources: High Commission for Planning , MEF, Foreign Exchange Office

GDP Growth GDP

9.8%

International ratings

Fitch

BBB-/Stable BBB-/Stable

805 828 873 896 953

0

2

4

61,000

500

0

2011 2014 2012 2013 2015

Standard & Poor’s

Unemployment rate Inflation GDP & real GDP growth

Foreign Direct Investment Household consumption

2013 2012 2011 2010 2009 2014 2015

9.2%

2013 2012 2011 2010 2009 2014 2015

418 438 471 482 501 516 574

+11%

2013 2012 2011 2010 2009 2014 2015

25.0

32.0 26.0 29.0 27.7 28.5

31.1

2013 2012 2011 2010 2009 2014 2015

Ø 1 1.0

1.8

0.9

1.3

1.9

0.4

1.7

Summary


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33

36

38

42

46

48

49

50

51





5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


2014

*Funds of funds, Caisses de dépôts, government agencies

4%

40%

31%

Others*

Investment companies

Individuals

Private holdings

Financial institutions

Management teams

5%

3%

48% 41% 38%

29% 32%

29%

23% 27% 33%

Comittees with some investors or experts

Comittees with systematic presence of investors

Internal comittees only

2013

15

2015

17%

3. FUND MANAGEMENT COMPANIES

Investment committees (in number) Distribution of the capital of fund

management companies

Number of fund management companies : 22 including 4 dedicated to infrastructure

Discretionary management : 62%

Average staffing (including Infra) : 6 including 4.2 working on investing activities and 1.8 in support

Summary


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5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


14% 13% 12% 11% 11%

3% 8% 7% 7% 9%

6% 5% 5% 4% 4%

34%

43%

32%

42% 40%

36% 39%

39% 37%

39%

At the end of 2015, the vast majority of funds continue to use either foreign or the SA legal forms

With the enactment of Law n°18-14 relative to Collective Investment in Capital Schemes (OPCC), this

legal form should substantially increase in the future

17

End of 2015

4. FUNDS UNDER MANAGEMENT

Distribution of funds by legal form (in number)

End of 2011 End of 2012 End of 2013 End of 2014

Foreign

SA : Société Anonyme, equivalent to standard Corporation in common law

SAS : Société par Actions Simplifée, equivalent to Limited Liability Company (LLC)

OPCC: Special venture capital funds vehicle created by Law 18-14 – Organisme de Placement Collectif en Capital

SCA: Société en Commandite par Actions, a partnership limited by shares


57%

34%

26%

50%

18% 17%

End of 2015

2/3 of the 3rd generation funds (starting in 2011) are located offshore

18% 20% 15% 14%

18

19%

34%

47%


Funds country of domicile (as % of value)

Per fund generation

2011 onward 2006-2010

Europe Rest of World Morocco


As % of value

52% 57% 58% 56%

37% 33% 33% 35%

6% 5% 5% 5% 3% 3% 3%

44%

25%

2% 10% 4%

3% 2%

63%

47%

19

2% 2% 2% 2%

3%


Nature of funds (Private Equity and Infrastructure)

Independents Captives financial institutions State captives Investment companies Others captives

End of 2014 End of 2013 End of 2012 2006-2010 2011 onward End of 2015


Total amounts raised since inception to end 2015 for Private Equity: 10.72 billion MAD

Amounts raised in Morocco by infrastructure funds: 5.49 billion MAD

Total amount raised by all funds: 16.43 billion MAD

230

488

946

480

916

423 490

2014

1,478

2012 2011 2010 2009 2008

1,633

2007

1,106

2006

1,499

2005

Average

funds raised

(2005 – 2009) :

991.2 Mln MAD

Average funds

raised including

Infra (2010 – 2015):

1,704.3 Mln MAD

2,839

980

2,416

3,078

2013

20

2015

712


Capital raised per year (Mln MAD)

Capital raised (including Infrastructure funds)


596

960

825

314

946

90

850

117

903

146

808

173

393

66

423 490

2007 2006 2014 2013

1.361

2012 2011 2010 2009 2008

5%

95%

95% of funds raised for Morocco over the period 2013 – 2015 were transregional

21

2015


Transregional funds

Moroccan funds

Capital raised by fund type (Mln MAD)


77%

21%

79%

55%

30%

1%

2%

1% 41%

16%

15%

4%

8%

4%

1%

6%

20%

3%

33%

7%

9%

9% 20%

38%

2011 2014 2013 2012

30%

7% 8%

6%

7% 5% 3% 4%

18%

56%

12%

10%

9%

25%

The share of international development organizations (IFC, EBRD, EIB and others) has increased

significantly with the 3rd generation funds

22

2015


Capital raised by investor type (excluding infrastructure funds)

2006-2010

As % of value

* Others: individuals, private companies

** Investment vehicles: funds of funds, holdings, investment companies

Insurance companies

Others* State and public organizations

Pension funds

International development organizations

Investment vehicles**

Banks and asset management companies

2011 onward


53% 47% 45% 46%

34% 41% 41% 40%

13% 13% 14% 14%

46% 54%

36%

64%

23


Capital raised by investor nationality

* Saudi Arabia, UAE, Kuwait, Tunisia, USA

EU

Other countries*

Morocco

End of 2012 End of 2014 End of 2013 End of 2015

End of 2015

Moroccan capital

Foreign capital Other foreign investors

International development organizations

Summary


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5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


12

21

15

6

17

14

11

10

80

35

112

100

89

117

422

585

309

170

586

607

489

2014

606

2013 686

2012

2011 344

2010 665

2009 432

The level of investment slightly declined in 2015 with 606 Mln MAD invested, including 11 new investments

166 companies invested since inception for a total of 5.5 Bln MAD

1,382

25

2015

282 8

696

Evolution of invested and reinvested funds

5. INVESTMENTS

Amounts invested and reinvested (in Mln MAD) Number of new investments

Amounts invested Amounts reinvested Number of companies Including large caps


4%

7%

8%

65%

10%

4 %

10 %

8 %

Rabat Salé

Casablanca region

65% Fez - Boulemane

Tangier - Tetouan

2 %

2 % 2 %

26

5. INVESTMENTS

Location of invested companies

End of 2015 (as % of value)

*Other regions : Chaouia-Ouardigha, Gharb-Chrarda-Beni-Hssen,

Oriental, Souss-Massa-Draa

Fez - Boulemane

Foreign

Marrakech -Tensift - Al Haouz

Meknes - Tafilalet

Rabat - Salé - Zemmour - Zaer

Tangier - Tetouan

Casablanca region

Other regions*


2014 2013

52%

27%

75%

2012

60% 56%

20%

13% 5%

12%

8%

2%

4%

7%

7%

4% 3%

4% 3%

1% 3%

58%

11%

72%

8%

74%

27

60%

52%

75%

45%

27%

2%

3%

26%

12%

5%

17%

6% 6%

2%

2%

17%

4%

1%

8%

4%

7%

7% 9%

3%

2015

5. INVESTMENTS

By year By fund generation

Location of invested companies

Casablanca region

Tangier - Tetouan

Rabat - Salé - Zemmour - Zaer

Fez - Boulemane

Other regions*

Foreign

Marrakech -Tensift - Al Haouz

Meknes - Tafilalet *Other regions : Chaouia-Ouardigha, Gharb-Chrarda-Beni-Hssen,

Oriental, Souss-Massa-Draa

2011 onward 2006 - 2010 2000 - 2005


22%

30%

17% 25%

10%

13%

11% 1%

5% 7%

2% 2% 5%

1%

24%

11%

13%

4%

6%

12%

15%

15%

22%

22%

The industrial sector represents 48% of investments made since 2011

Services and transport sector ranks second with 22% of investments

1%

1%

28

3%

*Health, Packaging, Aerospace, and others

5. INVESTMENTS

Auto industry

Primary ICT

Chemical industry

Trade and distribution

Agribusiness

Other industries*

Construction sector

Services and transport

Sectors of invested companies

By fund generation End of 2015

2011 onward 2006 - 2010


9% 3%

25%

14%

60%

73%

4% 8%

2/3 of investments have been in companies in the growth stage

2%

68%

7%

19%

5%

1%

29

2%

5. INVESTMENTS

2011 onward 2006 - 2010

Turn around Venture Seed Buy out Growth

Invested companies by development stage (as % of value)

By funds generation End of 2015


15% 8% 5%

60%

47% 46%

15%

16% 32%

8%

8%

6% 22%

11%

The share of majority transactions declined significantly (from 30 to 17%) between 2nd and 3rd

generation funds in conjunction with the decrease in buy out investments

30

2%

5. INVESTMENTS

Companies funded by percent of capital acquired

2011 onward 2006 - 2010 2000 - 2005

More than 67% <5 5 - 34 34 - 50 50 - 67


18% 27%

10%

14% 12%

10% 10%

11%

22% 8%

28% 30%

13% 17% 24%

36%

46%

7%

18%

21%

18%

13% 17%

12%

7%

18% 7%

9%

13%

17%

6%

7%

9% 47% 50%

24% 29%

18%

2014 2013 2012 2011

The investment trend of the last generation of funds is towards larger transactions (41% over 40 mln

MAD) and continued investment in the seed/venture stage

31

2015

5. INVESTMENTS


Companies funded by transaction size

2006 - 2010 2011 onward

More than 50 40 to 50 30 to 40 20 to 30 10 to 20 0 to 10 mln MAD


29

20

28

34

43 44

2014 2013 2012 2011 2010

The average ticket size invested between 2010 and 2015 is 33 mln MAD, which has sharply increased

with the 3rd generation funds

32

2015

Ø33

5. INVESTMENTS

Average ticket size of new investments (Mln MAD per year)

Summary


3

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36

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51





5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


35

268

360

148

81

99

186*

2013 2014 2012 2011 2010 2009

Exits were up 84% compared to 2014

Since inception, the total amount exited reached 2.2 bln MAD, representing 40% of the overall

amount invested by the Private Equity industry

181

874

1,115

*

34

2015

6. EXITS

Evolution of exits as % of value (Mln MAD)


* 3 undisclosed amounts

2006 - 2011 2011 onward 2000 - 2005


17%

9%

3%

22%

11%

41%

25%

63%

9%

17%

4%

6%

9%

31%

42%

23%

24%

26%

18%

35

Accumulated amounts exited: 2.2 Bln MAD

Number of exits: 91

6. EXITS

As % of value In number

Types of exits by fund generation

2011 onward 2005 - 2010 2005 - 2010 2011 onward

Industrials (Trade sales)

Private equity buyers IPO or sale of shares

Repayments Management

Loss realized

Summary


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33

36

38

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49

50

51





5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


Weighted average IRR at end of 2015: 13%

Average multiple (unweighted) : 2.0 (Seed - Venture : 1.2 / Growth : 2.6 / Buy out : 1.5)

Average investment length: 6.0 years

44%

16%

5%

-15%

2.0 x 13 %

37

7. PRIVATE EQUITY PERFORMANCE

1st Quartile 2nd Quartile 3rd Quartile 4th Quartile

Unweighted average IRR per quartile

Gross IRR Global multiple

Gross Internal Rate of

Return (IRR)* & Multiple 2000 - 2015

* Average Gross IRR on exits (Cf. Methodology)

Summary


3

7

14

16

24

33

36

38

42

46

48

49

50

51





5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


9% 12% 14% 14%

17%

38%

ICT

Turnover CAGR (compound annual growth rate) of invested companies

by the end of 2015* = 17.6 %

CAGR by end of 2014 = 15.4 %

CAGR by end of 2013 = 13.8 %

1%

19%

69%

11 4 10 12 12 18

X

0,3%

5%

19%

14 44 14

* Based on data of 72 invested companies and still in portfolio

39

8. PRIVATE EQUITY ECONOMY AND SOCIAL IMPACT

Turnover growth and employment growth of invested companies (by end 2015)

Employment CAGR by the end of 2015* = 4.9 %

CAGR by end of 2014 = 4.2 %

CAGR by end of 2013 = 7.7 %

Seed / Venture Growth Buy out / Turn

around

Turnover CAGR by development stage

Turnover CAGR by sector

Number of companies by sector / category

Seed / Venture Growth Buy out

Employment CAGR by development stage

Other

industries

Agribusiness Trade and

distribution Services Construction

BTP


22%

67%

17%

46%

31%

54%

13%

27%

12%

28%

40


End of 2014 At time of acquisition End of 2014 At time of acquisition End of 2014 At time of acquisition

End of 2014 At time of acquisition End of 2014 At time of acquisition

Annual training plan Strategic workforce planning Code of ethics

Actions engaging the

company in social activities

Actions for environmental

protection


62%

99%

32%

97%

33%

98%

36%

97%

34%

97%

41


End of 2014 At time of acquisition End of 2014 At time of acquisition End of 2014 At time of acquisition

End of 2014 At time of acquisition End of 2014 At time of acquisition

Company audit Oversight and steering

committees Reporting tools

Performance indicators and

scoreboards

Budgeting and budget

monitoring policies

Summary


3

7

14

16

24

33

36

38

42

46

48

49

50

51





5. Investments

6. Exits



9. Forecasts 2016

10. Key figures

11. Annexes


II. Acronyms

III. Glossary


29%

22% 22%

27%

43

27%

13%

13%

27%

20%

9. FORECASTS 2016

Identifying exits

Managing underperforming companies

Fundraising

Investing in new companies

Sub Saharan Africa Egypt

Tunisia Algeria

Morocco

Main challenges for 2016 Priority investment areas

(for transregional funds)


6%

22%

33%

17%

22% 15%

24%

21%

24%

18%

91 125

899

683

44

9. FORECASTS 2016

Not planned S2 2017 S1 2017 S2 2016 S1 2016

Planned fundraising for new funds

S1 2017 S2 2016 S1 2016 Not planned S2 2017

Planned exits for the majority of portfolio companies

Total Seed / Venture Buy out Growth

Investments forecasts for 2016 by development stage in mln MAD*

* 9 management companies


10%

9% 9%

9%

9%

6%

6%

5% 4%

11%

10%

13% 18%

15% 14%

11%

10%

10%

7%

16%

9. FORECASTS 2016

Investment sectors over the next 5 years Investment regions over the next 5 years

Agadir

Fez

Oujda

Laayoune Rabat

Casablanca

Tangier

Marrakech Energy

Distribution

Agribusiness

Services

Health Consumer goods

New technologies

Transport and Logistics

Telecom

Education

Automobile

BTP

Summary


3

7

14

16

24

33

36

38

42

46

48

49

50

51





5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


10. KEY FIGURES 2015

Funds raised

Investments

Exits

Economic and

social impact

Performance Average multiple

= 2.0

16.4 bln MAD raised by

private equity and

infrastructure funds

95 % funds raised since

2013 are by transregional

funds

5.5 bln MAD invested in

166 companies by the end

of 2015

606 mln MAD invested

in 2015

Average investment

ticket = 44 mln MAD

97% of companies have

implemented a complete

system of governance

Weighted average

gross IRR

= 13%

Average investment time

= 6.0 years

Employment CAGR = 4.9%

Turnover CAGR = 17.6%

Accumulated amounts exited

= 2.1 bln MAD

58% of exits since 2011 are through trade sales

or sale of shares (IPO)

3.2 bln MAD still

available for

investment

Summary


3

7

14

16

24

33

36

38

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50

51

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5. Investments

6. Exits



9. Forecasts 2016

10. Key Figures

11. Annexes


II. Acronyms

III. Glossary


Investment company

Swicorp

Operation

Investment in the capital of Venezia Ice

Injection of 125 mln MAD via the Intaj II fund

TPG Growth

SATYA Capital Limited Investment in Yassamine schools, up to 250 mln MAD

Blue Mango Capital Investment in Menara clinic in Marrakech, a center specialized in oncology and

radiology

Saham & Tana Africa Cap Investment in the primary and secondary education sector via a new entity: Sana

Education

11. ANNEXE I – Principal deals outside of AMIC’s perimeter

49


11. ANNEXE II – ACRONYMS

Bln MAD Billions of Moroccan dirhams

CAGR Compound Annual Growth Rate

EBRD European Bank for Reconstruction and Development

EIB European Investment Bank

EMPEA Emerging Markets Private Equity Association

GDP Gross Domestic Product

ICT Information and Communications Technology

IFC International Finance Corporation

IPO Initial Public Offering

IRR Internal Rate of Return

MEF Ministry of Economy and Finance

Mln MAD Millions of Moroccan dirhams

OPCC Organisme de Placement Collectif en Capital : Collective Investment in Capital

Scheme


11. ANNEXE III – GLOSSARY

Buy out Capital (transmission capital):

Transmission capital investments in management or owner succession aimed buyouts in mature firms.

Discretionary Management:

Classic private equity structure where individual investment decisions are in the hands of the management team.

Exit Amount:

Exit valued at proceeds of sale of investment in the enterprise.

Exit Mode: Management

Share by-back from PE investor by management of the enterprise.

Funds of Funds:

A fund raising funds from multiple sources for investment in a diverse number of private equity funds.

Growth Capital (late stage venture capital):

Investment in equity and quasi-equity in order to finance the development of a business or the acquisition of new

stocks. The business partner is a company established in its markets, profitable and having significant growth prospects.

Frequently called Growth Venture Capital.

IRR (Internal Rate of Return):

Measurement of the average annualized rate of return of an investment consisting of negative flows (cash

outflows) and positive flows (cash inflows). It is used to measure and monitor performance of private equity transactions.

Invested Capital:

Capital invested in enterprises by venture or private equity fund companies.

Multiple:

Investment Multiple = Proceeds of sale / Invested amount.


11. ANNEXE III – GLOSSARY

Private Equity Fund:

An investment vehicle that raises capital from a diverse group of investors with a view to investing in unlisted private firms and

realizing capital gains shared among investors.

Quartile:

Division of the quartiles are the values that share a set of values into four equal parts. Thus, in the distribution of IRR for

example, the first quartile is the IRR below which lie 25% of IRRs.

Quasi Equity:

Financing vehicles that combine both debt and equity characteristic.

Raised Capital:

Confirmed investment commitments in venture or private equity funds.

Seed Capital:

Seed Capital investors bring, along with equity, a professional network and personal experience in early stage entrepreneurial

projects that are still in development.

Small and Mid Caps:

The definition of small and mid caps varies depending on the maturity of the markets. In Morocco, AMIC considers that the

investments “Small and Mid Caps” correspond to transactions less than 200 mln MAD

Transregional Funds:

Funds targeting several investment geographies at the country level (in contrast to ‘regional’ funds within Morocco focused on

regional investment within Morocco alone)

Venture Capital (early stage):

Equity or quasi equity in young enterprises and start-ups.


Site Web : www.fidarocgt.com Site Web : www.amic.org.ma

Founded in 2000, AMIC (the Moroccan Private Equity Association)

is an independent professional association whose mission is to

unite, represent and promote the private equity profession to

local and international investors, entrepreneurs and governmental

bodies.

AMIC's main mission is to strengthen the private equity

industry’s competitiveness in Morocco and abroad via:

- Effective and clear communication about the private equity

industry

- Executing reliable reports and surveys on the state of

Private Equity in Morocco

- Active participation in discussions on any draft law

regulating the sector

- Establishing a good governance and ethics code for the

Private Equity industry and promoting compliance with this

code

- Providing support services to members on regulatory

issues related to the profession

- Development of a quality training program touching on all

industry fundamental skills.

Fidaroc Grant Thornton is a leading audit and consultancy firm

in Morocco, and member of the Grant Thornton International, a

global leader in consulting and auditing (38 500 employees, 130

countries).

For over twenty years, Fidaroc Grant Thornton has supported its

clients by setting a priority to listen to them and deliver creative

services value.

Fidaroc Grant Thornton operates in the following areas:

Auditing-Statutory Auditor

Advisory - IFRS / Consolidation

- Transaction and valuation services

- Actuarial

- Management of fixed assets

- Business Risk Services

- Research and strategy

- Organisation

- Information system

- Improvement of the performance

- Certification/Categorization

Legal, tax and social services advisory

Outsourcing accounting and social services support

private equity activity, growth and performance in morocco report 2015

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