In 2023, Moroccan investment management firms achieved a historic milestone, raising a record 3.009 billion dirhams, announced Hatim Ben Ahmed, President of the Moroccan Association of Capital Investors (AMIC), during a press conference in Casablanca.
From 2018 to 2023, the total funds raised amounted to 9.879 billion dirhams, more than double the amount raised between 2012 and 2017. This growth underscores the increasing attractiveness and capacity of the Moroccan investment landscape.
Since 2012, transregional funds have dominated, capturing 78% of the capital raised, often opting for foreign legal structures to navigate currency and tax constraints. Local funds, making up 22% of the total, typically use Moroccan legal structures, especially Collective Investment Schemes (OPCC). International development organizations and banks/asset management companies have been major contributors, representing nearly 70% of funds raised between 2018 and 2023.
After a decline in contributions from Moroccan investors from the first to the third generation of funds (from 73% between 2000 and 2005 to 25% between 2012 and 2016), there has been a resurgence. From 2018 to 2023, Moroccan investors accounted for 45% of total funds raised, indicating renewed local interest and confidence.
Investment milestones in 2023
In addition to record fundraising, 2023 saw investments reaching 2.542 billion dirhams. These investments were made by 12 management companies across 25 new enterprises and 16 reinvestments. Most of the funds are generalists, although there are some thematic funds. The service sector has seen continuous growth, now accounting for 41% of investments from 2018 to 2023, up from 18% between 2000 and 2005. Health and education sectors have also experienced significant growth.
Regionally, Casablanca-Settat led with 74% of investments, followed by Rabat-Salé-Kenitra (10%), Fès-Meknès (5%), Tanger-Tétouan-Al Hoceima (4%), and other regions (7%).
By the end of 2023, early-stage and venture capital investments represented 36% of the total number of investments and 7% in value. Their share has increased from 26% between 2006 and 2011 to 53% between 2018 and 2023. The number of transactions under 20 million dirhams has risen, supported by new funds dedicated to innovation and startup financing.
Investment ticket sizes have doubled over two generations, with average development and transmission investments growing from 52 million dirhams (2012–2017) to 117 million dirhams (2018–2023). For early-stage and venture investments, the average ticket size was around 7 million dirhams during 2018–2023.
The year 2023 also saw significant disinvestment activity, with 12 exits totaling 1.012 billion dirhams. Over the past six years, exits have totaled 4.622 billion dirhams, a substantial increase from 1.983 billion dirhams between 2012 and 2017. In total, 161 disinvestment actions have been recorded by the end of 2023.
The average gross internal rate of return (IRR) based on 111 exits was 12% from 2000 to 2023, with an overall sector multiple of 1.9. The holding period averaged 5.8 years, with the health, services, and construction sectors achieving the highest IRRs at 24%, 15%, and 14%, respectively.
The 2023 activity report, conducted by Grant Thornton under the guidance of AMIC’s Studies & Statistics Commission led by Hassan Laaziri, covers 24 management companies and 47 funds (23 active, the rest in disinvestment phases), representing nearly all management firms with offices in Morocco.
AMIC encompasses most of the private equity structures in Morocco, including venture capital, development capital, LBOs, and turnaround capital. Its 31 active members support and finance the growth of over 280 Moroccan companies. The association also includes 29 associate members who provide support and advice to investors and entrepreneurs.
