As part of their partnership, TLG Capital and Future Africa have established a US$25 million venture debt fund from TLG’s existing funds, which will be allocated to companies in the Future Africa portfolio that match certain requirements.
The two companies have joined forces to offer founders a program that includes training to better their understanding of available financing options and best-in-class techniques.
While Future Africa is an early-stage investor that has invested US$10 million in 97 portfolio businesses to date, TLG Capital is an investment holding company that focuses on private investment possibilities in SMEs across the capital structure and particularly in the credit arena.
Companies that satisfy these requirements will subsequently be eligible for financing from TLG Capital.
Future Africa is known for using strong structured credit models to quickly and effectively increase the impact of the entrepreneurs it supports. One of many such examples in our portfolio is Moove BV. According to Mayowa Olugbile, general partner at Future Africa, “We are excited to work with a financing partner like TLG, an expert in this type of structured finance products, to develop an asset-backed finance business that meets the needs of our rapidly expanding companies in this financing environment.
“We have observed how difficult it is for founders to acquire finance, and we are glad to reaffirm TLG Capital’s commitment to Future Africa’s early-stage entrepreneurs. We have spoken with 13 of Future Africa’s founders so far, and we have noticed certain common issues. For example, businesses must deal with significant currency devaluations in their home markets while raising US dollar equity. Aum Thacker, an investor at TLG Capital, said, “We are building a portfolio of best-in-class solutions so founders can concentrate on running and innovating while TLG as a structuring partner helps guarantee their firms are best equipped to respond to macroeconomic challenges.