NIGERIA – TLG Capital, a private equity firm, has partnered with Fidelity Bank Plc to invest US$20 million on SMEs in Nigeria that are focused on healthcare, education, consumer sectors, amongst others.
The funds will be channelled through TLG’s Africa Growth Impact Fund (ADIF), towards the development of SMEs in the country.
This new investment is in line with the bank’s move to provide innovative funding options and other forms of relevant support to entrepreneurs in the country.
Fidelity Bank Plc is a commercial bank in Nigeria with over 5 million customers, serviced across its 250 business offices and other digital banking channels.
According to TLG Capital, a total of US$303 million loans was still outstanding to SMEs and the unbanked through its portfolio companies.
This new investment will come as good news to SMEs and other entrepreneurs in the country, especially those seeking to obtain loans in the listed sectors.
TLG Capital is a permanent capital investment vehicle focusing on equity opportunities in Sub-Saharan Africa (SSA). Their investments have had a significantly social, environmental and development impact across Sub-Saharan Africa
TLG Africa invests in sectors underpinned by the ‘rise of the African consumer’, such as: healthcare, finance, consumer goods and real estate. These investments include direct minority/majority stake investments, secondary opportunities and distressed fund restructurings. TLG Africa always seeks board representation, along with other minority protections.
In December 2020, TLG Capital partnered with Nigeria’s Medical Credit Fund to investment through its Credit Opportunities Fund into Express Pharmacy – a Nigerian retail chain.
The growth capital was to be used to expand Express Pharmacy’s footprint across Lagos with the roll out of new pharmacies along busy commuter routes and in under-served communities across Lagos.
The investment is made through Medical Credit Fund in partnership with TLG’s Credit Opportunities Fund.
In October 2020, it announced the purchase of 49% stake in Opportunity Bank Uganda Ltd (OBUL), a tier commercial bank with 23 branches and 22 ATM points across Uganda.
The transaction made TLG the largest shareholder of OBUL with the remaining shareholders being Opportunity International Group (43%), Faulu Uganda (7%) and Food for the Hungry (1%).
TLG’s investment was made via its Credit Opportunities Fund (COF) and marks a continued focus on building and supporting SMEs in three core sectors: healthcare, financial institutions and consumer goods.
TLG has been an investor in Uganda for over a decade and other Ugandan investments include Cipla Quality Chemicals Ltd (pharmaceutical manufacturing), Vero Foods (water-bottling plant) and BAJ Service Stations (fuel retail).
