Project Portfolio Management (PPM) has emerged as an effective technique to manoeuvre and align projects and programs with business strategy. Strategic alignment empowers the Information Systems (IS) function and Information Technology (IT) enabled initiatives to support business development. To this end, organisations are using more IS projects and programs to enable them to compete. The literature identifies Information Systems Project Portfolio Management (IS PPM) capabilities but lacks empirical research on how these develop. This research seeks to address this gap by investigating how capabilities develop over time. This case study research adopts the Dynamic Capabilities theoretical lens to validate capabilities against existing research. It retrospectively analyses how these developed over time and examines how other portfolios may be able to embrace and ‘learn’ such capabilities. This study focuses on a portfolio of IS projects within a major Australian banking and financial institution. This study explores the top-down and bottom-up approach in building capabilities over time. \