Norsad Capital and TLG Capital have announced a partnership to establish an African credit platform for medium-sized companies across sub-Saharan Africa (SSA).
This will see medium-sized companies access to credit following a $400m investment on the platform.
This partnership seeks to 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 inferior 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 customers.
They aim to create a 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.
The alliance will have combined assets under management of around $400m towards investments in mid-sized companies in sub-Saharan Africa.
The partnership will also allow for the building and enhancement of the capabilities of both firms.
This is by sharing, presenting, and co-investing in well-structured credit investment opportunities with strong layers of downside protection and equity upsides embedded.
Norsad CEO Kenny Nwosu said 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 sustainable impact in the region,” Nwosu said.
“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.”
Nwosu also said that Norsad's purpose is to build a better Africa by providing financing to mid-market growth companies that contribute towards continental economic growth and improvement.
TLG CO-founder Zain Latif said that Norsad’s focus on creating a positive social return across the regions it invests in speaks to TLG’s mandate.
“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. We look forward to a bright future,” Latif said.
Norsad Capital seeks positively impact the lives of 100 million Africans by 2030.
It has invested more than US$500 million into at least 160 companies over 32 years.
TLG Capital intends to unlock $5 billion in African economic growth by investing in SMEs to accelerate their growth into Pan-African titans.
