Norsad Capital, TLG Capital Establish Ksh49B African Credit Platform
Norsad Capital and TLG Capital announced today the beginning of a partnership to cement the market leading private credit platform for medium-sized companies across sub-Saharan Africa (SSA). The partnership will allow for building and enhancement 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.
Norsad Capital and TLG Capital 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 are poised to expand but lack the required financing to do so. The alliance will have combined assets under management of circa US$400 million (Ksh49.2 billion) towards investments in mid-sized companies in sub-Saharan Africa.
Norsad Capital’s aspiration is to positively impact the lives of 100 million Africans by 2030 and target companies that can generate positive social impact and deliver strong financial returns – “profit with purpose”. Norsad has invested over US$500 million into over 160 companies over its 32-year history. TLG Capital aims to unlock $5 billion in African economic growth by investing in SMEs to accelerate their growth into Pan-African titans. Operating with the conviction that great entrepreneurs are transforming Africa’s future, TLG has completed more than 30 investments to date and has exited more than 20 (notably, all with positive IRRs ranging from 6%-35%).
Kenny Nwosu, Chief Executive Officer of Norsad, said, “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 be bringing our joint expertise to address some of the issues demonstrating our commitment to create 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.”
Zain Latif, Partner, and Co-Founder of TLG, 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 have 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.”