Public Commentary: The outline below describes FG Capital Advisors’ private credit advisory services for African markets. It is provided for information only and does not constitute an offer.
Private Credit Solutions for African Markets
Growth-stage companies, infrastructure sponsors and acquirers in Africa often face a financing gap between traditional bank loans and equity injections. FG Capital Advisors partners with specialty finance lenders, development finance institutions and private-credit funds to design tailored debt packages that meet gap-funding needs.
Market Challenges
- Senior-bank term sheets capped below mid-market transaction sizes.
- Equity dilution concerns for founders and existing shareholders.
- Variable currency regulations and cross-border capital controls.
- Local banks lack depth in structured credit for project finance or acquisitions.
Service Offering
- Mezzanine Financing: Subordinated debt with PIK options and equity kickers.
- Unitranche Facilities: Single-document senior+junior debt for simpler execution.
- Senior Stretch Loans: Extending senior bank lines with covenant relief.
- Structured Working Capital: Receivables, inventory and contract-backed facilities.
- Sponsor Bridge Loans: Short-term funding ahead of longer-term capital raises.
Process Overview
- Diagnostic Review: Examine business model, cash flows and capital requirements.
- Structure Design: Select debt mix, leverage ratios and repayment profiles.
- Investor Mapping: Identify suitable DFIs, private-credit funds and specialty lenders.
- Term-Sheet Negotiation: Manage pricing, covenants and security packages.
- Due Diligence Support: Coordinate financial, legal and operational reviews.
- Closing Coordination: Align counsel, trustees and administrative agents for swift funding.
Indicative Terms
| Facility Type | Leverage | Cost | Tenor |
|---|---|---|---|
| Mezzanine Debt | 1.0–1.5× EBITDA | 12–18% IRR | 5–7 years |
| Unitranche Loan | 3.0–4.0× EBITDA | SOFR + 500–650 bps | 4–6 years |
| Senior Stretch | 2.5–3.5× EBITDA | SOFR + 350–450 bps | 3–5 years |
Why FG Capital Advisors
- Partner-led guidance from structuring to closing.
- Established relationships with African DFIs and global credit funds.
- Experience in cross-border transactions and security enforcement.
- Practical approach to currency and regulatory challenges.
- Focus on aligning sponsor and lender interests for smooth execution.
Next Step
To explore tailored private credit structures and arrange a detailed consultation, please schedule a meeting with FG Capital Advisors.
This document is provided for informational purposes only. It does not constitute investment advice or an offer to buy or sell any security or service. Professional guidance is recommended before proceeding with any financing.
