TLG Capital in Kenyan education deal
TLG Capital and Development Bank of Kenya invest $6.5 million in Nairobi-based Ark Group.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
TLG Capital, a private credit fund focused on investing in sub-Saharan Africa, has partnered with the Development Bank of Kenya to close a $6.5 million investment into Kenya-based Ark Junior School and Playstreet Kindergarten, collectively known as the Ark Group.
Ark currently operates two schools in Nairobi and one in Kitengela, serving over 850 students.
"Each additional year of schooling raises an individual’s earnings by roughly 8-10%, whilst a child born to a mother with secondary education is 50% more likely to survive past age five," said Isha Doshi, co-founder of TLG Capital. “We’re excited to see Ark widen its educational offering to more children – and we’re hoping to demonstrate that, with the right partners and structuring, Kenya has an abundance of similar high-impact deals."
Beyond providing capital, TLG is implementing a 100-day plan – a hands-on framework offering financial and operational support to support the company’s growth. The plan outlines milestones such as an equity investment roadmap, a strategy for international education partnerships, and a forward-looking capital plan.
"We see this transaction as a milestone in demonstrating how local and international partners can work together to deliver capital to where it's needed most – African SMEs creating social value," said Johnson Kiniti, CEO at Development Bank of Kenya. "Partnering with TLG allows us to provide the nuanced financial structuring that banks may not be equipped to deliver. This enables us to offer our customers more flexible financing, and to free up liquidity to serve more clients. TLG brings both innovative structuring and deep engagement to the table, and we are proud to work alongside them to develop scalable, replicable models for SME financing in Kenya."
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here