In the countdown to its latest investment vehicle launch, Upline Investment, the private equity arm of Morocco’s Banque Centrale Populaire (BCP), is fast-tracking the sale of several long-standing assets. Over a decade after establishing the Upline Investments Fund, the firm is shifting its focus to exit older positions, signaling the end of an era and a new direction for the BCP subsidiary.
Following the recent sale of its majority stake in Forges de Bazas, Morocco’s top player in material handling equipment sales and rentals, Upline has now exited its position in Imalum (Industrie Marocaine d’Aluminium). This aluminum processing company, bolstered in 2009 by a capital injection of around 30 million dirhams from Upline Investments Fund and Moussahama II, was able to expand to an annual production capacity of 10,000 tons thanks to this investment.
A rare, extended fund lifecycle nears its end
The simultaneous divestment by both Upline Investments Fund and Moussahama II from Imalum hints at the winding down of at least one of these funds in 2025. Both funds have far exceeded their initial ten-year lifespan, kept active through multiple extensions approved by shareholders. This is particularly unusual in the private equity sector, where fund managers typically liquidate assets within a timely manner to preserve the internal rate of return (IRR) and pave the way for new investment rounds.
Moussahama II, for example, has been operating for nearly two decades—a rare occurrence in the industry where delayed asset sales can adversely impact fund performance metrics, especially the time-sensitive IRR. Private equity funds generally aim to liquidate assets swiftly, making way for new vehicles that align with the ever-evolving market.
A founder-focused exit strategy
Upline’s exit from Imalum was handled through a straightforward buyback arrangement, with Upline Investments Fund and Moussahama II selling their stakes to the company’s original founder, the Tinasti family. The family established Imalum in 2006 in partnership with German industrialist Sholz and has been instrumental in its growth and operations at its Had Soualem location, 30 kilometers from Casablanca.
As Upline Investment accelerates the liquidation of these mature assets, the company is poised for a fresh start with its upcoming investment fund. This strategic exit from legacy positions not only resets the stage for new ventures but also underscores the firm’s intent to create a more agile and time-efficient private equity model moving forward.
This pivot represents a promising step for BCP’s investment arm, as it gears up for the next chapter in Morocco’s evolving private equity landscape, with fresh capital, strategic focus, and a commitment to supporting high-growth sectors and emerging opportunities in the region.
