AfricInvest inks control deal for education group in Morocco

 AfricInvest inks control deal for education group in Morocco

Pan-African asset management and alternative investment firm AfricInvest has struck a deal along with Tawhid Chtioui to buy an 80% stake in Groupe ISGA, one of the oldest private higher education groups in Morocco, from the Diouri family.

Chtioui is an education entrepreneur and most recently served as the dean and president of Aivancity School for Technology, Business and Society at Paris-Cachan. He is taking over as president and CEO of ISGA.

Terms of the transaction were not disclosed, but the Diouri family will continue to own a minority stake in ISGA.

It is also not clear if Africinvest, which makes private equity, venture capital and private credit transactions, signed the deal via its Maghreb Private Equity Fund IV (MPEF IV).

This fund hit a final close in 2018 with €194 million and has a sweet spot for investments in the region of $10-30 million. This fund is also separately in talks to strike its first deal in almost two years in the IT sector, The Capital Quest had previously reported.

The Diouri family had initiated a transformation plan for ISGA five years ago with opening of a new campus in Casablanca and development of the online learning business. It can now look at further expansion plans.

“After 40 years of chairmanship of the ISGA Group and following the developments in the private higher education sector in Morocco, it was quite normal that I was looking for other partners who could bring new ideas to the school. vision and big plans,” according to Mohammed Diouri.

Brahim El Jai, partner at AfricInvest and CEO of AfricInvest Morocco, led the transaction along with Farid Benlafdil, investment director at AfricInvest.

For AfricInvest, this is the third deal in as many months. Last month, it invested in Burkina Faso-based RAYNAL Assurances IARD, a leading non-life insurer in the country. The firm routed the transaction through AfricInvest FIVE, an evergreen investment vehicle dedicated to the financial services sector in Africa.

This came soon after it acquired a minority stake in Nigeria’s Royal Exchange General Insurance Company through the same fund.

In July, AfricInvest joined the cap table as Compagnie Marocaine de Goutte à Goutte et de Pompage’s and Comptoir Agricole du Souss completed a previously announced merger.

AfricInvest, which operates multiple funds including PE, credit and even a separate joint venture fund, had also backed two companies based in other continents that may have a potential Africa play—Spengler Holtex and Ragni.

DLA Piper was the legal advisor to AfricInvest for the latest transaction. Scotto Partners advised Tawhid Chtioui while Abdelaziz Amraoui and Ali Filali were advisors to Groupe ISGA. Baker Tilly Burj Finance was the financial advisor.

Vivek Sinha

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