Emerging Capital Partners (ECP) announced on April 10th that the Moroccan Infrastructure Fund (MIF), which it co-manages alongside Attijari Invest, has sold its stake in Osead Maroc Mining (OMM). OMM is the controlling shareholder of Compagnie Minière de Touissit (CMT), the oldest lead producer and exporter in Morocco, specializing in exploration, extraction and processing of lead-silver ore and zinc-silver ore. The exit comes as OSEAD, OMM's parent company, increases its stake in OMM.

Since MIF's participation in the €38.3 million acquisition of CMT in November 2007, CMT has expanded by actively pursuing growth opportunities across Africa. In June 2008, CMT listed on the Casablanca Stock Exchange through the sale of 33% of its capital. The IPO was oversubscribed 14x. The company realized a 27% average annual growth in revenues since listing, reaching MAD 647 million and a net income of MAD 362 million in 2011. This growth has allowed CMT to achieve a market capitalization of more than €200 million.

The full exit represents 8.4x MIF's initial funded investment and an internal rate of return of 94%.

The Moroccan Infrastructure Fund (MIF) was established in December 2006 to capitalize on the expected large investments to improve Morocco's infrastructure. MIF has MAD 800 million ($105 million) in capital commitments from Moroccan, European and Kuwaiti investors. MIF is managed by Moroccan Infrastructure Management, a JV between Emerging Capital Partners (EMC) and Attijari Invest. EMC has six African funds under management totaling over $1.2 billion in capital commitments. Attijari Invest is the private equity arm of Attijariwafa Bank, Morocco's largest bank.

MIF targets numerous sectors including Telecoms, Transportation, Energy, Power and Water, and Ports.

The Fund seeks either majority or minority positions through equity, quasi-equity and convertible debt instruments. The Fund's equity investments typically range in size from MAD 50 - 100 M with a maximum of 20% of the Fund's total size available per transaction.

Source: EMC