With US $75 million raised, IFC and TLG Capital have announced the first close of their new private credit fund, TLG Africa Growth Impact Fund II (AGIF II).
The AGIF II Fund, which is supported by Swedfund, Norfund, Bpifrance, and the UK Foreign, Commonwealth & Development Office (FCDO) through its Manufacturing Africa program, is being anchored by IFC through its Distressed Asset Recovery Program (DARP) with a commitment of up to US $20 million.
The fund will finance up to 20 SMEs that are struggling with their current loan options in collaboration with African banks. By providing them with a local capital lifeline, this financing enables them to withstand macro shocks and other difficulties and come out stronger. In collaboration with banks in numerous African nations, the fund will assist companies in critical industries such as manufacturing, healthcare, agriculture, and telecommunications.
“Today, one in four SME loans in Africa is under stress,” said Isha Doshi, co-Founder of TLG Capital. “And yet, the entrepreneurial spirit is unshaken. AGIF II is our answer to that call for partnership. It’s about capital that understands context – financing that’s flexible, strategic, and backed by advisory horsepower from McKinsey, BDO, ESS, and Ndarama Works. TLG AGIF II brings together both capital and capacity building.”
