Introduction to the Private Equity Landscape
The interplay between private equity and the stock market has emerged as a pivotal issue within Morocco's financial dynamics. While traditional bank financing continues to dominate the Moroccan economy, the rise of private equity introduces a complementary approach aimed at fostering growth, enhancing governance, and ultimately facilitating access to public markets.
This gradual convergence between private equity and the official stock exchange serves as a tangible catalyst for transforming corporate growth narratives and invigorating the Casablanca Stock Exchange.
Performance Metrics and Growth Trends
Data compiled by the Moroccan Association of Capital Investors (AMIC) in its 2024 impact report, released in July 2025, corroborates this trend. Operationally, companies backed by investment funds experienced an average revenue growth of 20.5% in 2024, driven in part by sector allocations focused on high-potential activities.
For instance, firms in the information and communication technology (ICT) sector reported a remarkable growth of 79%, followed closely by the healthcare sector at 59%.
Investment activity remains robust, with the private equity industry mobilizing nearly 3.9 billion dirhams in 2024. Cumulatively, from 2018 to 2024, total funds raised reached approximately 13.8 billion dirhams, marking a 50% increase compared to the previous generation.
Record Fundraising and Future Projections
Hassan Laaziri, president of AMIC, noted that 2024 is set to be a record year for fundraising, with a structurally upward trend. The amounts raised, invested, and divested have more than doubled from one generation to the next, initiating a virtuous cycle for the private equity industry.
Over the past fifteen years, the sector has raised around 15 billion dirhams, with expectations to mobilize nearly 20 billion dirhams in the next two years, particularly through the Mohammed VI Fund, amidst a favorable market environment and strong economic momentum.
The Role of IPOs in Private Equity Exits
This upward trajectory is also evident in exit strategies, with initial public offerings (IPOs) accounting for nearly 22% of private equity fund exits from 2018 to 2024, confirming the stock exchange as a credible alternative to industrial divestitures.
However, preparing for a public listing necessitates a profound transformation of the invested companies. Joint research by AMIC and Grant Thornton reveals that 99% of companies have a formalized budgeting policy at the time of exit, compared to just 45% at the time of investment.
Additionally, 95% of companies have active monitoring committees, and 67% undergo audits, up from 42% and 40% respectively at the time of investment. This enhancement in governance practices and transparency helps mitigate the risk premium for public market investors during potential IPOs.
Venture Capital Resilience Amid Regional Challenges
In a regional context marked by a slowdown in startup financing across Africa in 2024, the venture capital segment has demonstrated relative resilience. Fundraising for technology startups surpassed 82 million dollars for the year, positioning Morocco among the active markets in North Africa, although volumes remain below those seen in South Africa or Egypt.
Financial and Economic Value Creation
The impact of private equity is also measurable in terms of financial and economic value creation. Between the entry and exit of funds, or by the end of 2024 for assets still in the portfolio, the average EBITDA multiple stands at 2.5x. Concurrently, tax contributions are on the rise, with an estimated increase of 250 million dirhams in taxes collected in 2024 compared to 2023, reflecting a greater formalization of businesses, a typical precursor to public listing.
A Promising Pipeline for Future IPOs
This dynamic fosters the hypothesis of a natural pipeline towards the Casablanca Stock Exchange. AMIC member funds support over 160 companies, with an average holding period of approximately six years. By 2026-2028, this portfolio could serve as a consistent source of IPO candidates.
Past operations illustrate this pattern: companies such as Akdital, TGCC, and Cash Plus have experienced trajectories where private equity intervention preceded access to the stock market, aligning with goals of structuring and liquidity.
Diverse Approaches in Venture Capital and Private Equity
The national ecosystem also benefits from a differentiated structuring of venture capital and private equity players. For instance, UM6P Ventures focuses on long-term financing directed towards deep tech, linked to research and innovation. In contrast, Al Mada Ventures operates as a corporate venture capital entity, targeting scale-ups with potential for industrial and regional deployment.
On the private equity side, Moroccan funds like AfricInvest Maroc engage with growth or transition-phase companies, providing structured support in governance, financial strategy, and preparation for exit scenarios, including potential public offerings.
Sectoral Diversification and Market Depth
Private equity and, to a lesser extent, venture capital could also promote sectoral diversification within the stock market. Historically dominated by financial services, telecommunications, retail, and construction, the Casablanca exchange may soon see an influx of companies from the healthcare, services, and technology sectors, gradually altering the market's sectoral profile.
However, this synergy must navigate the structural realities of the market. Balancing liquidity demands with stringent regulatory requirements, IPOs remain a selective endeavor, accounting for only about 22% of fund exits during the 2018-2024 period, a figure expected to rise in the coming years.
Conclusion: A Gradual Convergence
While not universally viewed as a systematic outcome, IPOs are increasingly recognized as an integral step within the financing cycle. This movement signifies a gradual strengthening of market depth, where public listings become a natural outlet for companies that have reached full maturity under private equity.
Recent data clearly indicate a progressive convergence between private equity and public markets in Morocco. The structuring of financed companies, the increase in fundraising, and the resurgence of significant IPOs suggest a reinforced continuity between private financing and public capital markets.
Without a fundamental model shift, this evolution contributes to deepening Morocco's financial market and positioning the Casablanca Stock Exchange as a natural conduit for liquidity and growth for mature companies.
Future Aspirations for Fundraising
The Moroccan Association of Capital Investors (AMIC) aims to double annual fundraising efforts to reach 6 billion dirhams by 2030, building on a decade of growth characterized by a fourfold increase in exits. This momentum is currently bolstered by the catalytic role of the Mohammed VI Investment Fund, which seeks to address the financing gap for mature SMEs and mid-sized enterprises in the intermediate ticket segment (20 to 100 million dirhams), while also supporting major national projects related to energy transition and the upcoming 2030 World Cup.
To sustain this momentum, the sector is focusing on mobilizing local savings, particularly through institutional investors and pension funds, while advocating for the removal of fiscal barriers such as VAT on management fees. Private equity is increasingly recognized as a strategic lever for economic sovereignty, capable of transforming productive savings into national champions and enhancing Morocco's international attractiveness in a context of industrial development.