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| Capital North Africa Private Equity Fund |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26242 |
| Company name | Capital North Africa Venture Fund |
| Country | Morocco |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Active |
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| Date SPI disclosed | September 11, 2007 |
| Projected board date | October 11, 2007 |
| Previous Events | Invested: February 26, 2008
Signed: November 9, 2007
Approved: November 6, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposal is to make an equity commitment of up to €5 million, not to exceed 20% of total commitments in the Capital North Africa Venture Fund (the Fund), a private equity fund which will make equity and equity-related investments in small and medium-sized enterprises (SMEs) located primarily in Morocco but opportunistically in Algeria and Tunisia (collectively, North Africa or the Region). The Fund has a committed capital target size of €40 million and will be managed by Capital Invest (the Manager), a fund management company based in Casablanca, Morocco consisting of experienced local investment professionals. |
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| Project sponsor and major shareholders of project company |
| Capital Invest was formed in 2000 as a private equity fund manager in Morocco. Its main sponsor is BMCE Capital (70% ownership), which is a subsidiary of BMCE Bank, one of the largest commercial banks in Morocco. The other shareholders of the Manager include Siparex (15% ownership), a French private equity group, and CIC Finance (15% ownership), a French banking group. The principal executives of the Manager include Mr. Mehdi Tahiri, President, Mr. Omar Chikhaoui, Director General, and Mr. Younes Al Abadan, Investment Director. |
| Total project cost and amount and nature of IFC's investment |
| The Fund has a target size of €40 million. IFC’s proposal is to invest up to €5 million of the Fund’s total commitments. |
| Location of project and description of site |
| The Fund is formed as a Moroccan Societe Anonyme Simplifiee and has a local investment team in Casablanca, Morocco through the Manager. |
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| Anticipated development impact of the project |
- Private sector development:
The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.
- Implementation of best practice for corporate governance in portfolio companies:
The Fund will adopt international best practices for corporate governance and management, as well as transparency, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.
-Growth in employment and labor productivity:
The Fund is expected to invest in growth stage companies that will increase employment at a high growth rate.
- Support for Small and Medium Enterprises (SMEs):
The Fund is expected to allocate its capital to SMEs. |
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| IFC's expected development contribution |
IFC’s expected contribution to the Fund is:
- IFC’s catalytic role:
IFC's participation in the Fund will add credibility to the Manager and broaden the Fund’s investor base.
- Support an emerging fund manager:
IFC will support the development of the local private equity industry targeting SMEs by helping grow a local fund manager.
- Institution building role in fund operations and governance:
IFC will provide corporate governance guidelines.
- Fund structuring role:
IFC will ensure the Fund is structured according to IFC and international best practice. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:
- The IFC FI Exclusion List and/or
- The applicable National Social and Environmental Laws and regulations and/or
- The IFC Performance Standards
IFC will also review, if required, the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (“SEMS”). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.
The Fund Manager will be required to:
- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC
- Identify responsible, qualified persons to manage and implement the SEMS
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements
- Take action to remedy any gaps in SEMS implementation on an ongoing basis
- Submit a periodic report to IFC as per a format to be provided by IFC |
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| For inquiries about the project, contact: |
Omar Chikhaoui, General Director
CAPITAL INVEST
30 Boulevard Moulay Youssef
2nd floor-20000 Casablanca
Morocco
o.chikhaoui@bmcek.co.ma |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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