A new partnership completed by Norsad Capital and TLG Capital will see medium-sized companies across sub-Saharan Africa (SSA) access credit following a $400 million investment for a credit platform.
According to a statement, this collaboration will allow the building and enhancement of the capabilities of both firms by sharing, presenting, and co-investing in structured credit investment opportunities with 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 capital offering with a mix of senior and subordinated debt.
Norsad Capital and TLG Capital have combined their efforts thanks to their expertise in legal matters, and their reach in SSA. This will allow the companies to offer the ideal financing solutions to their customers.
The alliance will have combined assets under management of around $400 million towards investments in mid-sized companies in sub-Saharan Africa.
Norsad Capital seeks to impact the lives of 100 million Africans by 2030 and target companies that can generate positive social impact and deliver strong financial returns. The firm says it invested over $500 million into over 160 companies over its 32-year history.
On its side, TLG Capital aims to unlock $5 billion in African economic growth by investing in SMEs to accelerate their growth into Pan-African titans.
Kenny Nwosu, Chief Executive Officer of Norsad, said, “Our purpose as an organization 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 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.”