Capital Invest Group will be sponsored by its two principal investment executives namely Mr. Mehdi Tahiri and Mr. Omar Chikhaoui. Mr. Tahiri is the Chairman of Argan Invest, fund management arm of FinanceCom group. He joined BMCE Capital in 1999 and launched the FinanceCom group’s private equity activities. He remained CEO of Capital Invest until 2006 when FinanceCom group decided to launch ARIF after which he moved to Argan Invest. During 1995 to 1999, Mr.Tahiri was a Senior Consultant at Arthur Andersen (Paris). Mr. Tahiri is an engineering graduate of the Ecole des Mines in Paris. Mr. Chikhaoui is the Chairman of Capital Invest, the manager of the investment funds - Capital Morocco and CNAV Fund I. He has more than 15 years of experience within the domain of Expansion Capital and Buyouts and initiated the first leveraged buyout transactions in Morocco. Mr. Chikhaoui was previously the chairman of the Moroccan Venture Capital Association and is also the President of Club Invest. Previously, he was a business manager in the venture capital companies Asma Invest and Fayçal Finance. Mr. Chikhaoui has an M.B.A. in Finance and a Master’s Degree in Management (International Finance) from University of Dallas, and is a certified Chartered Financial Analyst (CFA).

The Fund has a target size of €70-100 million. IFC’s proposal is to invest up to €10 million not to exceed 20% of the Fund’s total commitments.

13.22 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	13.22

* These investment figures are indicative

The Fund will be established in Luxembourg and will primarily invest in companies in Morocco but will also target investments in Algeria and Tunisia and make opportunistic investments in Egypt and West Africa.

Supporting SMEs: The Fund's strategy is to target SMEs with high upside potential but that lack access to finance due to limited resources in the market. Private Sector development: The Fund will provide not only capital but also managerial support and expertise to SMEs in North Africa region to improve their competitiveness and sustainability. Implementation of best practice for corporate governance in portfolio companies: The Fund will adopt international best practices for corporate governance and management, as well as transparency, thus fostering knowledge and skill transfer, and encouraging best practices across the industry. Job creation: Unemployment constitutes one of the greatest barriers for poverty alleviation and economic development in the region. The Fund's target countries including Morocco, Algeria, Tunisia and Egypt exhibit high unemployment rates. The Fund's strategy is to target high growth companies, which will make a positive contribution to job creation and economic growth.

Structuring of the Fund: IFC will work closely with the fund manager to ensure that the Fund's structure and terms are in line with IFC and international standards, thereby ensuring adequate investor protection. Catalytic role for reaching the target fund size: IFC's commitment to a quality emerging fund manager would act as a stamp of approval and play a catalytic role in mobilizing other sources of capital, thus contributing to a successful closing of the Fund. Institution building role in fund operations and governance: IFC will play an active role in helping the fund manager adopt best practice corporate governance and environmental and social standards at the Fund. Assist the fund manager to broaden its geographical reach: IFC presence and knowledge in North Africa gives IFC a unique position to provide lessons of experience that other investors can not readily provide. IFC will use its regional knowledge to assist the fund manager in broadening its geographic reach

This project has been classified as a Category "FI" project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the Fund''s pipeline, for types of transactions, size, and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the Fund''s pipeline. Considering IFC’s investment, the Applicable Performance Requirements are:

- The IFC FI Exclusion List;
- The applicable National Social and Environmental Laws and regulations; and
- The IFC Performance Standards.

IFC also reviewed the Fund''s existing Environmental & Social due diligence process and identified gaps in the current Environmental and Social Management System (ESMS). Based on the Applicable Performance Requirements and the ESMS capacity review, the project will be required to:

- Upgrade, as a condition of IFC commitment, the ESMS to outlines screening against the Applicable Performance Requirements to the satisfaction of IFC;
- ensure continuous appointment of a qualified person(s) to manage and implement the ESMS and notify IFC in case the appointed person is replaced;
- commit to implement the ESMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements;
- take action to remedy any gaps in ESMS implementation on an going basis; and
- submit a periodic report to IFC as per a format to be provided by IFC.

IFC will review the implementation and performance of the Fund''s ESMS for the first few projects; prior to the Fund''s investment, to ensure that the SEMS functions properly. The Fund will also notify IFC for any investment in Category "A" project.