Private Credit for Business Acquisitions in Africa

Private Credit for Business Acquisitions in Africa | Financely Group

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.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.