TLG Capital announces first close of Empower Fund
TLG Capital and Tunisian asset management company United Gulf Financial Services-North Africa (UGFS) have announced the first close of the Empower Fund, initiated by CDC Tunisia.
The fund will invest in small and medium-sized enterprises (SMEs) with strong potential to scale across the region and Africa, using debt and mezzanine structures to achieve equity-like returns with a lower risk profile.
In addition to CDC Tunisia, four additional financial institutions in Tunisia have subscribed as limited partners and the fund aims to select eight to 12 SMEs for investments of $2-5 million.
Mohamed Salah Frad, general manager of UGFS, said “We are proud to be part of this initiative that confirm our position as a leading actor of financing of SMEs and innovation in Tunisia. This also affirms our role and know-how in supporting and accompanying Tunisian SMEs as well as our vision to be among the active players in the ecosystem to support and boost the national economy and facilitate job growth alongside our partner TLG Capital.”
Zain Latif, partner, and co-founder of TLG, said “It is a pleasure to have reached a first close. We look forward to helping structure sound investments into SMEs that will accelerate recovery and growth in a post-Covid environment. TLG has traditionally focused on sub-Saharan Africa, and it is therefore a pleasure to expand our geographic remit as a firm, and, to reach firms in Tunisia with expansion potential. We hope to help those looking to explore growing across continent. UGFS’s focus on creating a positive social return via the Empower Fund, and on working closely with CDC, also speak to TLG’s mandate, and we look forward to a bright future together. We believe UGFS is the right North African partner to help drive TLG’s growth across the continent in the coming years.”