Dipo Olowookere
By Dipo Olowookere
A credit platform worth $400 million to meet the funding needs of small and medium enterprises (SMEs) across sub-Saharan Africa (SSA) has been created by the duo of Norsad Capital and TLG Capital.
A statement disclosed that the two organisations aim to leverage each other’s structuring and legal expertise, including a presence in SSA, to provide the ideal financing solutions for their clients.
Both companies are long-standing investors in the region and, alongside financial return, aim to create strong social impact by financing primarily the mid-market growth companies that are profitable, stable, and poised to expand but lack the required financing to do so.
It was further stated that the partnership would allow for the building and enhancing of the capabilities of both firms by sharing, presenting, and co-investing in well-structured credit investment opportunities with strong layers of downside protection and equity upsides embedded.
This partnership will, amongst others, further promote syndication opportunities and platforms, risk participation structures, jointly offer larger ticket sizes, and provide a balanced capital offering with a mix of senior and subordinated debt.
“Our purpose as an organisation is to build a better Africa by providing financing to mid-market growth companies that contribute towards the continent’s economic growth and improvement.
“This partnership with TLG Capital is a demonstration of two entities that have, over the years, noted that lack of access to finance for businesses in Africa limits their ability to expand.
“We will bring our joint expertise to address some of the issues, demonstrating our commitment to creating a sustainable impact in the region.
“Our relationship with TLG Capital has been fostered over time, and we are excited to be working with an organisation that shares our vision and is flexible enough to experiment and drive growth in Africa,” the chief executive of Norsad, Kenny Nwosu, said.
Also commenting, the Partner, and co-founder of TLG, Zain Latif, said, “Norsad is a well-known, well-respected institution within the African investment landscape, and we have known each other for years.
“It is, therefore, a pleasure to announce we will be working closely going forward, particularly given Norsad has been investing in credit deals in Africa for over three decades, longer than anyone else we have come across.
“Norsad’s focus on creating a positive social return across the regions it invests in also speaks to TLG’s mandate, and we look forward to a bright future together. As we continue to build on our venture financing deals, Norsad is the right partner to help drive that narrative over the next few years.”
Business Post reports that Norsad aims to impact the lives of 100 million Africans by 2030 positively. It has invested over $500 million into over 160 companies over its 32-year history.
On its part, TLG Capital aims to unlock $5 billion in African economic growth by investing in SMEs to accelerate their growth into Pan-African titans.
