Investment firm TLG Capital increases expansion from fresh funding, sets sights on achieving final closure by the end of 2025.
TLG Capital, a London-based impact investment firm focused on sub-Saharan Africa, is stepping up its efforts to support small and medium-sized enterprises (SMEs) by accelerating the deployment from its second US dollar-denominated credit fund. The innovative bank guarantee-backed structure introduced in this fund aims to de-risk SME lending, while preserving equity-style upside for investors.
The bank guarantee-backed structure de-risks SME lending by providing a financial safety net that reduces the risk exposure of lenders and investors. This structure lowers the default risk on loans to SMEs by having banks guarantee repayment, which encourages increased lending to these enterprises that traditionally face financing challenges due to perceived higher risks.
By employing this innovative structure, TLG Capital is facilitating faster and more confident capital deployment into SMEs. This approach enables lenders to extend credit more readily, as the bank guarantees offer a level of security that mitigates credit risk.
In addition to TLG Capital, other companies are also making moves in the funding landscape. Grocery-delivery app Breadfast and proptech platform Coraly.ai have reportedly raised funds, although the specifics about the size or timing of these fundraisings were not provided. Similarly, it is not clear if these fundraisings or acquisitions are related to TLG Capital's recent activities.
Meanwhile, Alterra Capital Partners is planning to bring in a co-investor for a travel group deal, but the specifics about the deal were not mentioned. South African PE firm Capitalworks is set to acquire payments terminal supplier, but the details about the acquisition, such as the target company or the terms of the deal, were not provided.
In Egypt, the snacks maker that was acquired by Egyptian PE firm Ezdehar in their sixth deal from Fund II remains unidentified. It is also not clear if this is the sixth deal from TLG Capital's Fund II or from any other fund.
Elsewhere, the Saudi sovereign wealth fund PIF has AI embedded across every layer of their organization. However, the implications of this integration for their investment strategies are not discussed in the article.
[1] Information sourced from the top executive's statement on TLG Capital's website.
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