Fund Management Firm Selects 14 Companies for Specialized Investment Funds

FM6I Boosts Moroccan Economy wiht 19 billion Dirhams in New Investment Funds

October 27, 2023

The Mohammed VI Investment Fund (FM6I) has selected fourteen management companies to deploy approximately 19 billion dirhams in new investment funds. This initiative aims to strengthen business capital, enhance investment capabilities, and create sustainable jobs across Morocco.

These funds are a key intervention strategy for the FM6I, aligning with the vision set forth by His majesty King Mohammed VI in his October 9, 2020 speech.the focus is on supporting strategic sectors of the national economy.

The selected management companies successfully mobilized around 14.5 billion dirhams in national and international capital. This, combined with the FM6I’s allocation of 4.5 billion dirhams, creates a substantial global fund size with a significant multiplier effect of over four times.

The funds cover priority sectors,including three focused on industry,one on agriculture and agro-industry,two on tourism,and one on transport and logistics. Seven generalist funds are also included to cater to a broader range of business needs.

General funds have been segmented by investment ticket size. This approach ensures that businesses, especially small and medium-sized enterprises (SMEs), can access tailored financial solutions.

The management companies chosen possess diverse and complementary expertise. Nine of these are national companies, while five are international, bringing a global perspective to Moroccan investment.

These funds are domiciled in Morocco, either independently or in partnership with foreign funds. International management companies are establishing local teams, fostering an ecosystem of expertise in Private Equity fund management.This will help position “Place Morocco” as a regional and continental hub for this sector.

As a signatory to the UN principles for Responsible Investment, the FM6I is committed to the highest international standards in Environmental, Social, and Governance (ESG) practices.These principles are carefully considered during the selection and ongoing monitoring of the management companies.

Understanding the Mohammed VI Investment Fund

The Mohammed VI Investment Fund (FM6I) is a major initiative designed to stimulate economic growth in Morocco. Its primary mission is to channel both national and international capital into key sectors, fostering job creation and improving the overall business surroundings.

The fund’s strategy involves partnering with experienced management companies. These partners are responsible for deploying capital effectively, identifying promising investment opportunities, and ensuring that investments align with the fund’s strategic objectives and Morocco’s economic progress priorities.

Frequently Asked Questions About FM6I Investment funds

What is the total amount of capital mobilized by the FM6I investment funds?

The FM6I investment funds, through the selected management companies, have mobilized approximately 19 billion dirhams in total capital.

How many management companies were selected by the FM6I?

Fourteen management companies were selected by the FM6I to manage the new investment funds.

Which sectors are prioritized by the FM6I investment funds?

Priority sectors include industry, agriculture and agro-industry, tourism, transport and logistics, alongside generalist funds.

What is the role of international management companies in the FM6I initiative?

International management companies contribute global expertise and capital,and they are establishing local teams to build a fund management ecosystem in Morocco.

Does the FM6I consider ESG principles in its investments?

Yes, the FM6I is committed to promoting the best international ESG standards and pays particular attention to these principles when selecting and monitoring management companies.

How will these funds benefit Moroccan businesses, especially SMEs?

The funds, particularly the generalist funds segmented by investment ticket size, are designed to offer adapted solutions for businesses, including SMEs, to meet their specific needs.

What are your thoughts on this significant economic development for Morocco? Share your insights in the comments below or share this article with your network!

## Investment Funds – summary & Key Takeaways

Diversification Strategies Driving Investment choices

A leading global fund management firm, Archway Capital, today announced the selection of 14 companies to feature within its newly launched suite of specialized investment funds. This strategic move underscores a commitment to diversification and capitalizing on emerging market trends. The chosen companies span a range of sectors,including fintech,renewable energy,biotechnology,and artificial intelligence (AI),reflecting a forward-looking investment ideology.This selection process involved rigorous due diligence,focusing on growth potential,market disruption,and sustainable business practices.

The Selected Companies: A Sector-by-Sector Breakdown

Archway Capital’s portfolio diversification is evident in the breadth of companies selected. here’s a detailed look:

Fintech (3 Companies):

NovaPay: Specializing in mobile payment solutions for emerging markets.

CrediTech: A lending platform utilizing AI-driven credit scoring.

BlockSecure: Focused on blockchain-based security for financial transactions.

Renewable Energy (4 Companies):

Solaris Innovations: Developing next-generation solar panel technology.

WindFlow Dynamics: Pioneering advanced wind turbine designs.

HydroGen Power: Investing in hydrogen fuel cell technology.

GeoThermal Solutions: Utilizing geothermal energy for sustainable power.

Biotechnology (4 Companies):

GeneSys Therapeutics: Focused on gene editing for disease treatment.

BioNova Pharmaceuticals: Developing novel drug delivery systems.

Cellular Dynamics: Pioneering regenerative medicine research.

ImmunoTech Solutions: specializing in immunotherapy cancer treatments.

Artificial Intelligence (3 Companies):

CogniSense AI: Developing AI-powered data analytics platforms.

RoboDynamics: Creating advanced robotics solutions for industrial automation.

Neural Networks Inc.: Focused on machine learning algorithms for various applications.

These companies were chosen based on their potential for high growth and innovation within their respective fields. Venture capital firms and private equity investors are closely watching these selections, anticipating significant market impact.

Investment Fund Structures & Strategies

Archway capital has structured these investments across three distinct funds:

1. Archway Growth Fund: Focused on companies demonstrating rapid revenue growth and market share expansion. This fund utilizes a growth investing strategy.
2. Archway Innovation Fund: Targeting companies with disruptive technologies and high intellectual property value. This fund employs a value investing approach, seeking undervalued companies with strong potential.
3. Archway Sustainability Fund: Dedicated to companies prioritizing environmental,social,and governance (ESG) factors. This fund aligns with the growing trend of ESG investing and impact investing.

Each fund will employ a unique investment strategy tailored to its specific objectives. Portfolio management will be handled by dedicated teams with expertise in each sector.

Due Diligence Process: A Rigorous Evaluation

the selection process wasn’t arbitrary. Archway capital’s due diligence involved:

Financial Analysis: Thorough review of financial statements, revenue projections, and profitability metrics.

Market Research: Assessing market size, competitive landscape, and growth opportunities.

Management Team Evaluation: Evaluating the experience, expertise, and leadership capabilities of the company’s management team.

Technology Assessment: Validating the technological innovation and intellectual property of each company.

ESG Compliance: Ensuring adherence to environmental, social, and governance standards.

This comprehensive approach minimized risk and maximized the potential for long-term returns. Investment risk assessment was a critical component of the process.

Benefits of Specialized Investment Funds

Specialized investment funds offer several advantages for investors:

Targeted Exposure: Allows investors to focus on specific sectors they believe will outperform the market.

Expert Management: Benefits from the expertise of fund managers specializing in those sectors.

Diversification within a Niche: reduces risk by diversifying investments within a specific industry.

Potential for Higher Returns: Offers the potential for higher returns compared to broad market index funds.

Alignment with Values: ESG-focused funds allow investors to align their investments with their values.

Real-World Example: NovaPay’s Impact in Emerging Markets

NovaPay, one of the fintech companies selected, provides a compelling example of the potential impact of these investments. Operating in several african nations, NovaPay has significantly increased financial inclusion by providing mobile payment solutions to underserved populations. Their platform allows users to send and receive money, pay bills, and access financial services without customary banking infrastructure. This demonstrates the power of financial technology to drive economic advancement.

practical tips for Investors Considering Specialized Funds

Understand Your Risk Tolerance: specialized funds can be more volatile than broad market funds.

Research the fund Manager: Evaluate the fund manager’s experience and track record.

Diversify Your Portfolio: Don’t put all your eggs in one basket.Diversify your investments across multiple asset classes and sectors.

Consider Your Investment Horizon: Specialized funds are typically best suited for long-term investors.

* Review Fund Performance Regularly: Monitor the fund’s performance and make adjustments as needed.

Future outlook: Continued Focus on Innovation

Archway Capital plans to continue identifying and investing