CDG Invest Growth, the private equity arm of Morocco’s state-owned financial institution the Caisse de Dépot et de Gestion (CDG), has committed capital to a medical devices company, marking its sixth bet from its latest fund.
The Casablanca-headquartered PE firm has made a $15 million commitment to Dislog Dispositifs Médicaux (DDM), the medical devices arm of Dislog Group, the largest FMCG manufacturer and distributor in Morocco. The PE firm will deploy the capital from its $100-million Capmezzanine III fund, which was launched in 2021.
The deal is structured as a reserved capital increase, allowing CDG Invest Growth to take an equity stake in DDM. The deal is aimed to support DDM’s expansion in Morocco and Africa, notably through a build-up strategy already underway, according to a statement. The agreement awaits regulatory clearance before being finalized.
This will be CDG Invest Growth’s fifth investment in the healthcare sector. Its other healthcare portfolio companies include Groupe Oncorad, a private healthcare provider focused on oncology and radiology, and Steripharma Laboratories.
CDG Invest Growth aims to deploy a mix of debt and equity capital from the Capmezzanine III fund in companies with strong growth potential in the health, education, services, new technologies, and consumer goods sectors.
It has so far deployed capital in five companies. These include fertilizer distributor Agri Trade Maroc, agri-food company Comaner, haemodialysis products provider Soludia Maghreb, Groupe Oncorad, and Retail Holding.
Since its establishment in 2001, CDG Invest Growth has raised four funds, collecting nearly $200 million (2 billion Moroccan dirhams) from private and public investors, including pension funds, insurance companies, and development finance institutions. The PE firm targets high-potential companies with revenues exceeding $10 million. It makes minority or majority investments in ticket sizes ranging from $10 million to $30 million.
The PE firm has made over 25 equity investments and managed 15 exits in various sectors. It includes fintech company HPS, business process outsourcing entity Intelcia, and distributor of high-tech medical equipment T2S.
CDG, set up in 1959, is a state-owned financial institution that manages assets worth $33 billion under the banking arm CDG Capital and the investment arm CDG Invest. It manages two pension funds RCAR (Régime Collectif d'Allocations de Retraite) and the CNRA (Caisse Nationale de Retraites et d'Assurances).
CDG Invest Growth is a subsidiary of CDG Invest, which also manages another investment arm called Fipar Holding. Fipar manages $800 million worth of assets and backs companies across infrastructures, energies, services, and industrial sectors. Founded in 1989, Fipar was acquired by the CDG Group in September 2003. Its key portfolio companies include Morocco’s second-largest cement producer Ciments du Maroc, insurance and brokerage player AFMA Maroc, and the French automobile manufacturer PSA Group.
