Norsad Capital has partnered with TLG Capital to establish a $400 million market-leading private credit platform for medium-sized companies across sub-Saharan Africa (SSA).
The partnership will allow for the 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.
The partnership will also, 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.
The alliance will have combined assets under management of circa US$400 million 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 the 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 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.”