Frontier markets investment banking boutique Exotix has entered into a partnership with TLG Capital, a private equity investor in sub-Saharan Africa and frontier markets.
The agreement will see Exotix provide advice and capital raising support to TLG Capital.
It will also enhance Exotix clients’ access to opportunity rich markets in sub-Saharan Africa. In addition to the strategic partnership, Exotix management will also be personally investing in the platform
TLG Capital brings together regional and sector specific funds under a single platform for the benefit of investors and fund managers alike. This centralised platform offers a more stable framework through which to invest in the region, especially for growth capital funds (with less than USD100m AUM). TLG Capital’s focus on secondary private equity opportunities enables investors to access mature deals at relatively low entry prices, resulting in a portfolio with an attractive and exciting risk return profile.
In addition to providing fundraising support, the partnership agreement mandates Exotix to introduce its broad investor base to attractive opportunities in defensive sectors such as healthcare, water, agriculture and food.
Peter Bartlett, managing director, Exotix, says: “We see deep value in sub-Saharan African secondary private equity and believe that TLG Capital are best placed to deliver the most attractive proposition for growth investors. We look forward to working with them and help them grow their footprint in the region.
"After carefully studying this landscape we recognise that TLG Africa represents a quality route for our clients to capitalise on the opportunities in sub-Saharan Africa. This agreement marks the latest step we have taken to increase international access to under-tapped regions, evidencing our commitment to help investors unlock value in frontier markets worldwide."
Zain Latif, founder and principal of TLG, says: “By the end of Q1 2013, TLG Capital will have had three liquidity events, including two full exits, in each of which we have achieved IRRs of over 35 per cent. The commitment and confidence in our business shown by Exotix will allow us to build on the success and track record of our primary deals and focus on the secondary space which is largely dormant in SSA. We look forward to unlocking this value with Exotix given the global footprint and access which is important for TLG Capital to continue to scale up and grow."
