AFR Business

London, July 2018

TLG Capital announced today it has provided London based The Progeny Group (TPG) with a USD 2M facility, with a commitment to fund a further USD 5M, which will be used to grow TPG’s platform via acquisition and also to enhance its organic growth and customer base.

TLG will be using this partnership with TPG to create a platform for investing in frontier markets, specifically focusing on TLG’s niche – Sub Saharan Africa (SSA). The platform will provide TPG’s network of investors access to unique investment opportunities in SSA in the financial, consumer, and healthcare sectors.

The Progeny Group has c. GBP 1,020M of assets under management (AUM) and is the UK’s first multi-service professional platform to deliver integrated wealth and legal services to high net worth individuals and family offices. Combining these services and underlying skillsets allows clients to receive a fully integrated solution with a transparent fee structure. No other firm in the market currently has a comparable breadth, depth, and expertise in this sector under one offering. TPG’s expertise in alternative investment structures makes them uniquely positioned to build a frontier market investment platform with TLG Capital. “The Progeny Group has always been focused on delivering unique solutions for its clients. TLG’s investment focus on the rise of the African consumer coupled with their consistent track record over the past 10 years is something The Progeny Group wants to back”. said Neil Moles, Managing Director, The Progeny Group.

“TLG Capital have known The Progeny Group for a number of years. We have always been impressed by their offerings to clients and their rigorous due diligence process. Indeed, they have served TLG in several valued added ways with professional advice in the past. The Progeny Group is well poised to achieve their vision of having GBP 2B AUM by 2020. Through our partnership with TPG, we hope to reach more quality businesses in emerging and frontier markets and this represents an exciting step forward in our fund’s continued efforts to support growth and job creation in these markets.” said Isha Doshi, Partner at TLG Capital.
“TLG Capital have known The Progeny Group for a number of years. We have always been impressed by their offerings to clients and their rigorous due diligence process.

About The Progeny Group: The Progeny Group (TPG) is a wealth management business based out of Leeds, UK. The company has developed an integrated platform to meet the needs of individuals, families and businesses. It is a multiservice professional platform, designed to deliver integrated wealth and legal solutions to High Net Worth Individuals and businesses in the UK. Its range of wealth management and legal advisory services is built on a simple philosophy – work hard to understand client’s aspirations to give the quality service and bespoke structuring that the client require. theprogenygroup.com

London, June 2019

TLG Capital announced today a $10m investment in Platcorp Holdings Limited (Platcorp), through its Credit Opportunities Fund (COF). Platcorp has subsidiaries in Kenya, Uganda and Tanzania. The facility offers Platcorp the optionality to leverage both hard and local currency capital, helping meet demands of its businesses. This is TLG’s first local currency financing for private investments, hedging its risk with MFX Currency Hedge Solutions. It is also marks TLG’s first investment in Tanzania, adding to its East African portfolio of Uganda, Kenya and Rwanda. TLG remains committed to its investment thesis of providing much needed capital to SMEs across Sub Saharan Africa (SSA).

Indeed, SMEs in SSA have limited access to capital from banks, which tend to focus on larger corporates and government products. This lack of access to finance for SMEs is a key factor restricting growth and ultimately affects job creation. According to IFC, four out of five new job opportunities in emerging and frontier economies are created by SMEs and they account for up to 33% of GDP. TLG’s investment comes at a time when Platcorp’s growth trajectory is strong and it continues to utilise its existing footprint to grow to new heights.

“We are delighted to attract investment from TLG Capital. Platcorp’s growth trajectory continues to be very exciting with our sustained and deep understanding of financial services in the region”, said Brett Sievwright, Group CEO. “TLG’s experience on the continent adds credence to Platcorps value proposition and we look forward to building our relationship with them. We remain committed to improving the lives of individuals through financial inclusion and partnerships with similar minded financiers, like TLG.”

“Platcorp is poised for significant growth, servicing clients across East Africa and we are pleased to announce our partnership with them today”, said Saad Sheikh, Principal at TLG Capital. “Platcorp has an outstanding management team with best in class credit processes. Their products are transforming lives, providing the unbanked with access to financing and scaling businesses. We are excited to help grow Platcorp’s reach and footprint. Platcorp has built a solid foundation and is geared for its next growth phase. With the necessary infrastructure in place, the group intends to significantly increase its operating leverage in years to come. This investment further demonstrates TLG’s resolve to create jobs through financial inclusion across its investment landscape.”

“Platcorp has an outstanding management team with best in class credit processes. Their products are transforming lives, providing the unbanked with access to financing and scaling businesses.”

About Platcorp Group:
Platcorp’s core business is investment in micro-finance and non-banking lending subsidiaries that initially focused on providing services primarily to civil servants across the East African region. The Group has since diversified into targeting a larger group of prospective clients outside the government payroll with various products and services including micro-insurance products, asset-financing, payroll lending to private sector clients and traditional microfinance products such as group loans and SME lending. As of December 2018, the Group’s total number of customers was 380,185 served through 315 branches with 5,100 employees. Find out more.

June 27th, 2019

Platcorp Holdings, a microfinance and non-bank lending institution, has received a USD 10mn investment from TLG Capital, which invested through its Credit Opportunities Fund (COF). The COF investment gives Platcorp the option of leveraging hard and local currently capital; and is the investment firm’s first local currency financing for private investments – hedging its risk with MFX currency hedge solutions.

Early last year, Centum sold a 25% stake in Platcorp to both the company’s management and Suzerain Investment Holdings (an existing shareholder) in a deal reported to be worth USD 10mn.
The investment in Platcorp, which has subsidiaries in Kenya, Tanzania and Uganda, adds to TLG’s East Africa portfolio that currently comprises Kenya, Uganda and Rwanda.

London, September 2019

TLG Capital and Medical Credit Fund today announced an investment in Express, a Lagos-based mass market pharmacy retail chain. The investment will help expand Express’ footprint across Lagos. With a plethora of fake medical products in Nigeria, Express Pharmacy targets the underserved middle to low income earners who do not have access to quality medication. According to a Dalberg study, middle-low income consumers represent over 40% of the population in Lagos.

The investment is made through TLG’s Credit Opportunities Fund and is in partnership with Medical Credit Fund.

Most pharmacies in Nigeria, serving the mass market, are unlicensed sole traders with non-existent supply chain management resulting in a high level of counterfeit products being served to customers. Express Pharmacy on the other hand, is already helping solve this problem by standardizing its supply chain across its retail stores ensuring product availability and authenticity.

Ms. Abimbola Faseun of Express Pharmacy said: “We are extremely delighted to announce the investment we have secured from TLG Capital and Medical Credit Fund. This is a major step forward for our vision of building a nationwide chain of community pharmacies that will offer underserved communities with high quality medicines at affordable prices.”

Saad Sheikh, Principal of Private Investments who led the deal for TLG: “We are excited by our recent investment in Express Pharmacy which further demonstrates our continued commitment to healthcare across Sub Saharan Africa by enhancing innovative business models such as Express. This investment further validates our commitment to UN’s Sustainable Development Goals of ‘No Poverty’ ‘Good Health and Well Being’ and ‘Gender Equality’.”

“This is a major step forward for our vision of building a nationwide chain of community pharmacies that will offer underserved communities with high quality medicines at affordable prices.”

Dorien Mulder, Investment Manager at Medical Credit Fund: “As part of PharmAccess Group we are dedicated to improving access to quality healthcare in Africa through innovations and partnerships. We value the partnership with TLG to support the entrepreneurs of Express to grow this promising model. Express can make a positive and much needed impact on the quality of care available to lower income Nigerians.”

About Express Pharmacy:
Founded in 2018, Express Pharmacy is a chain of pharmacy stores that offers low prices, quality products and world class service. Each store offers its customers the lowest prices within a 2km radius, a guarantee of authentic quality drugs and world class service in a bright and air-conditioned environment. By the end of 2020, Express Pharmacy will have a state-wide network of stores in Lagos. Read more about Express Pharmacy.

About Medical Credit Fund:
Established in 2009 as part of the PharmAccess Group to increase access to better healthcare services in sub-Saharan Africa for low-income patients. It remains the only dedicated fund to finance and support small and medium-sized healthcare enterprises in Africa. So far, the fund has extended over 3,500 loans totalling US$ 62 million. www.medicalcreditfund.org

October 9th 2020

TLG Capital (TLG) today announced it has purchased 49% of Opportunity Bank Uganda Ltd (OBUL), a tier 1 financial institution (commercial bank) with 23 branches and 22 ATM points across Uganda. OBUL is licenced and regulated by the Central Bank of Uganda and offers tailormade products and services for individuals, micro-businesses, and small-and-medium sized enterprises (SMEs). The bank was originally a microfinance institution founded in 1995. The transaction makes TLG the largest shareholder of OBUL. Remaining shareholders (all NGOs) include Opportunity International Group (43%), Faulu Uganda (7%), and Food for the Hungry (1%).

TLG’s investment was made via its Credit Opportunities Fund (COF) and marks a continued focus on building and supporting SMEs in three core sectors: Healthcare, Financial Institutions, and Consumer Goods. TLG has been an investor in Uganda for over a decade and other Ugandan investments include Cipla Quality Chemicals Ltd (pharmaceutical manufacturing), Vero Foods (water-bottling plant) and BAJ Service Stations (fuel retail).

Isha Doshi, partner and CFO at TLG Capital said: “TLG was founded with the belief that social development and commercial returns can and should go hand in hand. The COF was specifically set up to support quality SMEs, and we are excited to welcome OBUL to the TLG family. Financial inclusion is a key aspect of development, and TLG looks forward to serving the unbanked and underbanked further. OBUL’s products such as the Boda Boda Loan (loan product for motorcycle riders who want to acquire or expand their business), WASH (water and sanitation loans) and the education and laptop loans fit perfectly with the impact that TLG aims to create.”

Banks and financial institutions have been hit hard across the continent due to COVID-19. TLG believes that this makes it the right time to invest in the sector, both from a commercial point of view and from an impact perspective. TLG believes that overlaying further digital technology within the bank’s product suite will expand the bank’s reach and lay a stronger pathway towards including those currently outside of the financial system. The expertise that TLG brings in terms of fintech will help OBUL progress effectively in this effort.

Phillip Karugaba, the Chairman of the OBUL Board of Directors, said he was excited and pleased with developments. “TLG Capital knows Uganda very well. We look forward to the synergies from working with TLG.”

MyBucks SA (the selling shareholder) Chairman Craig Lyons commented: “The sale of OBUL to TLG, a well-respected investment company fits into our strategy of rationalising MyBucks SA to reduce debt and ensure the company is in a financially healthy position to grow its remaining investments. TLG presented a well-constructed offer that enables MyBucks to exit at an attractive value. The positive engagements between TLG and OBUL management will no doubt enable OBUL to grow from strength to strength. We wish TLG and all stakeholders in OBUL much success in the years to come.”
“TLG Capital knows Uganda very well. We look forward to the synergies from working with TLG.”

Julian Thatcher, general counsel at MHMK Group, a pan-African private equity investment firm, was advisor to the deal.

About Opportunity Bank Uganda:
Opportunity Bank Uganda Limited (OBUL) is a Commercial Bank licensed and regulated by the Central Bank of Uganda. OBUL offers tailormade products and services for Individuals, micro, small, medium and large sized enterprises.

OBUL was founded in 1995 as a Micro Credit program from Food for the Hungry International (FHI). Other key shareholders include Opportunity International group (43%) which focuses on transformation of communities, Faulu Uganda (7%) and Food for the Hungry (1%).

OBUL has a network of 23 branches and 22 ATM Points distributed in the Central, Eastern, Western and Northern regions of the country. Alternative channels include Agents distributed across the country (120 Agents) and Opportunity mobile banking system (Opportunity Kusiimu). OBUL is also a member of the Interswitch Network and our customers have access to over 400 Interswitch powered ATMS across the country.