Project detail - MAGHREB PRIVATE EQUITY FUND IV LLC

Who is our customer

AfricInvest was founded in 1994 and is today among the leading private equity firms in North and Sub-Saharan Africa, with whom FMO has built a strong partnership through investments since the inception of the firm. AfricInvest relies on a team of 66 highly skilled investment professionals, operating out of nine offices in Algiers, Cairo, Casablanca, Abidjan, Lagos, Nairobi, London, and Paris. The Maghreb Private Equity Fund IV (“MPEF IV”), managed by Africinvest has received capital commitments in a rolling first close of EUR152m from 10 DFIs including FMO. The fund has a target size of EUR200-250m.

What is our funding objective?

MPEF IV is a 10-year fund that will invest in small and medium enterprises (SMEs) and mid-cap companies in North Africa (including Algeria, Egypt, Morocco, and Tunisia), looking to take substantial minority stakes. The fund targets companies that are well-established in their local markets and that have the potential to scale up their activities at the regional level, in the Mediterranean basin and across the African continent. By investing in firms showing strong growth potential and with the ambition to expand regionally and internationally, MPEF IV will contribute to the creation of significant value within the companies and to the positive impact they have on their local communities. MPEF IV investments will endeavor to improve SME governance and increase foreign-exchange receipts, and at the same time, create new jobs, increase government tax revenues and more broadly foster regional economic integration. The fund will focus on several sectors, including IT and telecoms, FMCG, healthcare, education, logistics, agribusiness and a broad range of services (financial, business processing and others), with investments in the range of EUR6-25m being targeted.

Why do we fund this investment?

This investment perfectly fits FMO’s strategy in terms of additionality, providing needed capital to a long-standing partner in North Africa, and regionally, continuing FMO’s focus on the Circle around Europe. This investment allows FMO to further contribute to the robust growth in the North African SME/Midcap space, whilst further contributing to several of FMO’s sustainable development goals. FMO’s commitment to MPEF IV further solidifies its relationship with Africinvest and contributes further to FMO’s ambition of being a preferred partner for growth in emerging markets.

What is the Environmental and Social categorization rationale?

From an E&S risk perspective, the Fund’s is categorized as category B based on the Fund’s pipeline. The fund manager has a well-developed, robust environmental & social management system in place. The Fund develops ESG risk assessments and environmental & social action plans for all of its investees that are being tracked and annually reported to investors. MPEF IV will aim to promote environmental, social and governance best practices in its portfolio companies.

Sub investments

Disclaimer

This data is updated annually so some investments might no longer be in FMO’s portfolio, while some newer investments may not yet be shown.

Name	Country	Region	Sector
Planet Sport S.a.r.l.	Morocco	AFRICA	Diverse Sectors