Exotix enters strategic partnership with TLG Capital
Exotix, a frontier markets investment banking boutique, has entered into a strategic partnership with TLG Capital Limited, a private equity investor in sub-Saharan Africa and frontier markets.
Exotix, established in 1999, will provide strategic advice and capital raising support to TLG Capital, while Exotix clients will have access to markets in sub-Saharan Africa. Exotix management will also be personally investing in the platform
TLG Capital brings together regional and sector specific funds under a single platform for both investors and fund managers. This centralised platform offers a more stable framework through which to invest in the region, especially for growth capital funds (with less than $100m AUM).
TLG Capital’s focus on secondary private equity opportunities enables investors to access mature deals at relatively low entry prices.
Peter Bartlett, managing director of Exotix said there is “deep value” in sub-Saharan African secondary private equity. The deal also marks the firm’s latest step towards increased international access to under-tapped regions, “helping investors unlock value in frontier markets worldwide”., he said.
Zain Latif, founder and principal of TLG, noted that by the end of Q1 2013, TLG Capital will have had three liquidity events, including two full exits, each achieving IRRs of over 35%.
“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.”
Exotic is owned by its employees and Michael Spencer, CEO of ICAP plc, together with his family trusts. Headquartered in London, it has offices in New York and Dubai. It is a specialist in illiquid bonds and loans, equities, structured finance, asset management, research and capital raising, and operates across sub-Saharan Africa, Argentina, North Korea, Cuba, the Balkans and other key frontier markets.