Private Credit for Financing Business Acquisitions in Africa
Financely arranges sponsor-led acquisition financing across African markets. We structure and underwrite unitranche, mezzanine, holdco PIK, seller notes, and asset-backed lines to close transactions on credible timelines with enforceable security and disciplined covenants.
What We Finance
Transaction Types
- Control buyouts and majority recapitalizations
- Management buyouts and successions
- Roll-ups and bolt-on acquisitions
- Carve-outs and corporate divestitures
- Preemptive acquisitions with limited auction data
Target Profiles
- Cash-generative businesses with verifiable margins
- Recurring revenue or contracted order books
- Strong working capital controls and audit trails
- Proven management with clean governance
- EBITDA above USD 5m preferred
Structures We Arrange
Unitranche and Senior Stretch
Single-tranche term debt to fund purchase price with a simple intercreditor behind any RCF. Useful where speed and certainty matter more than shaving basis points.
Mezzanine and Preferred Instruments
Contractual coupon with PIK features and covenants tailored to integration risk. Often paired with equity co-invest to right-size total leverage.
Holdco PIK and Acquisition Bridge
Holdco notes for speed at signing, refinanced post-close into a longer-dated stack once audited information and collateral filings are complete.
Seller Notes and Earnouts
Vendor paper aligned to performance. Used to bridge valuation gaps and reduce day-one cash needs while preserving incentives for the seller.
Asset-Based Lending and RCFs
Borrowing bases on receivables, inventory, and selected PP&E. Supports working capital and integration without stressing term covenants.
FX and Cross-Border Solutions
Hard-currency holds with local cash sweep mechanics, escrow waterfalls, and hedging so the debt service matches cash generation.
Where We Operate
| Country |
Primary Cities |
Notes |
| South Africa |
Johannesburg, Cape Town, Durban |
Established lender base and clear perfection paths |
| Kenya |
Nairobi |
Tech, logistics, and consumer. FX and tax planning required |
| Nigeria |
Lagos, Abuja |
Cash control, FX access, and security filings drive feasibility |
| Egypt |
Cairo, Alexandria |
Industrial, healthcare, and consumer scale. Local pledges key |
| Morocco |
Casablanca, Rabat |
Export-facing sectors and nearshore supply chains |
| Ghana |
Accra, Tema |
Working capital controls and trade flows are central |
Terms Snapshot
| Instrument |
Ticket Size |
Leverage |
Tenor |
Economics |
| Unitranche / Senior Stretch |
USD 10m to 150m |
Up to 3.5x to 4.5x EBITDA subject to quality |
3 to 6 years |
Cash margin plus fees. Amortization or bullet with cash sweep |
| Mezzanine / Pref |
USD 5m to 75m |
Total leverage to 5.0x subject to cash conversion |
4 to 7 years |
Coupon with PIK features and equity kicker where needed |
| Holdco PIK / Acquisition Bridge |
USD 10m to 100m |
Case by case |
12 to 36 months |
PIK-heavy with call protection. Refinance at stabilization |
| Seller Note / Earnout |
USD 2m to 50m |
Complements senior and mezzanine |
2 to 5 years |
Subordinated coupon or profit share tied to milestones |
Ranges are indicative and subject to credit, sector, jurisdiction, and documentation quality.
Security and Control
- Share pledges at Bidco and Opco, guarantees where legal and practical
- Fixed and floating charges over assets and contracts
- Blocked accounts, waterfall escrows, and cash sweep mechanics
- Assignment of material contracts, key customer consents where feasible
- Insurance assignments and change of control approvals on close
- Intercreditor and subordination agreements that match the stack
Underwriting Requirements
- Three years of audited financials and latest management accounts
- Quality of earnings and tax diligence scopes agreed at term sheet
- Customer and supplier concentration analysis and churn metrics
- Working capital seasonality and borrowing base evidence
- Draft SPA, sources and uses, and integration plan
- Beneficial ownership KYC and sanctions screening
- Security perfection roadmap by jurisdiction
- FX policy and hedging plan for hard-currency debt service
- Compliance, licensing, and regulatory approvals where required
- Board governance and reporting cadence post-close
Our Process
1. Screening
Send a teaser, model, SPA outline, and audited history. We confirm feasibility and lender appetite.
2. Term Sheet
Indicative structure, pricing ranges, covenants, collateral, and closing timetable.
3. Underwriting
QoE, legal, tax, and technical diligence. Intercreditor and security perfected on a clear track.
4. Closing and Funding
Documents executed, CPs satisfied, funds scheduled. Post-close monitoring begins immediately.
What Drives Approval
- Cash conversion and free cash flow to debt service
- Visibility on pipeline, churn, and margin durability
- Integration plan with accountable owners and monthly targets
- Clean legal structure and practical enforcement
- Realistic exit or refinance path within tenor
Frequently Asked Questions
How fast can we close
Eight to twelve weeks from complete data. Faster if security filings and regulatory approvals are straightforward.
How much equity do sponsors need
We expect meaningful equity at risk and a credible cash buffer. Vendor notes and earnouts can supplement but do not replace equity.
Do you work with local banks
Yes. We often pair an international private credit hold with a local RCF or guarantee facility to improve liquidity and enforcement.
Which sectors see the most traction
Consumer, healthcare, logistics, essential B2B services, power services, telecom adjacencies, and export-oriented manufacturing with hard-currency flows.
Request Acquisition Financing Terms
Share your teaser, SPA outline, audited financials, and integration plan. We will respond with structure options and a closing checklist.
Start in CLOSE
Financely Group acts as an arranger through regulated partners. All engagements are subject to KYC, AML, sanctions screening, legal and financial diligence, and credit approval by counterparties. Nothing herein is a commitment to lend or an offer of securities.