Capital North Africa Venture Fund II (CNAV II)

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BIO invests € 5 million in equity in Capital North Africa Venture Fund II (“CNAV II”), which is the follow-on fund of CNAV I in which BIO invested in 2006. The Luxemburg based fund will seek to make investments in medium-sized companies mainly in Morocco, but will also have the opportunity to invest to a limited extent in the other Maghreb countries (Algeria, Tunisia, Egypt) and West-Africa. Transactions will include growth capital, buyouts and synergetic integrations of companies within a specific industry sector to produce market efficiencies.

Development impacts:

(i) Access to long term capital : While various funds active in Morocco would more likely invest in larger companies, CNAV II will provide long term capital to SMEs, hereby supporting the development of the private sector. Capital Invest will also intermediate in raising debt for the investee companies, which is key as, even with a quite well developed banking sector in Morocco, smaller companies tend to be left out by banks.

(ii) Contribution to local company development :

• The manager will ensure that international best practices for corporate governance, transparency and compliance are adopted at the level of the investee companies. An active involvement in the governance through a board seat will be essential in this respect.

• Information management systems will be adopted to make regular reporting of Key Performance Indicators possible.

• Monthly committees will be put in place for the monitoring of business activity.

• Guidance in terms of strategy and achievement of business plan will be offered through very regular interactions.

(iii) Access to an extended business network : the extensive network of Capital Invest within Morocco is clearly a unique selling point. It will help investee companies identify the necessary key human resources to reinforce its management, find the best supplier for a specific need, extend its client base or connect with industrial experts in specific fields. Capital Invest will also assist portfolio companies in accessing new markets. Investee companies will also become member of Club Invest, a networking platform managed by Capital Invest, of which all former investee companies are also member and which meets on a regular basis.

(iv) Job creation and tax revenues : Unemployment constitutes one of the greatest barriers for poverty alleviation and economic development in the region. Morocco and the other target countries exhibit high unemployment rates. The Fund will aim at targeting high growth companies, which will make a positive contribution to job creation and economic growth. Growth of the investee companies will also contribute to additional tax revenues for the country.

Website : www.capitalinvest.co.ma


  • Investment amount (€):

    €5M

    Registered office: Luxemburg Beneficiary countries: Morocco, Algeria, Tunesia, Egypt and West Africa

  • Contract signature :

    2013

  • Nature of intervention :

    Equity

  • Development impacts :

    • 1 — Access to long term capital
    • 2 — Contribution to local company development
    • 3 — Access to an extended business network
    • 4 — Job creation and tax revenues
    • 5 —