Inquiry Into the Moroccan Private Equity Industry: A Proposal of an Adapted Value Creation Framework

Abstract

The Private Equity (PE) activity in Morocco has received so little attention until now. Aside from the professional association of PE in Morocco and other professional bodies concerned with the topic, the literature stream exploring the generation of value creation during a PE transaction is quite inexistent.

The proposed paper is considered as the first attempt to tackle the value generation within a Private Equity transaction in the Moroccan context. We attempt during this paper to present a conceptual analysis of how PE firms may generate value on their portfolios level. Since data is a scarce resource in this field and especially in the context of emerging countries, we propose for this explanatory study to use the semi constructed interview with four major PE firms in the Moroccan landscape, which represents 50% of the PE transactions that occurred in the last three years, in order to (i) understand the general partners (GPs) decision-making process for a given transaction and (ii) explain what are the main value generation levers that are intended to be made into practice in order to maximize the value in a given transaction.