South African utility Eskom’s pension fund has tapped Sanlam Investments to manage a new SME debt fund focused on opportunities in the country’s small and medium-sized enterprises that have been operating for at least three years, which had given some indication of profitability before the pandemic, and show high growth prospects. The Eskom Pension and Provident Fund (EPPF) has committed R350 million to the fund, while Sanlam has agreed to invest an additional R50 million, giving the fund a total of R400 million (or approximately $25 million) to invest in debt deals.
“Sanlam has a 10-year track record in SME direct lending in South Africa, and currently manages around R2.3bn in SME debt strategies,” said Shafeeq Abrahams, EPPF’s Chief Executive. “We believe their deep understanding of the local SME sector will be instrumental in growing this endeavour.”
To read this article, you must be a paid subscription member. (Current members login here
Reserve your digital subscription today
Join now for $35 per month
Join now for $395 per year
for access to:
- Weekly newsletter with original and curated news, analysis and perspective
- Africa’s private capital deals, fund raises and the investment firms and executives involved
- Portfolio company news that impacts value and stakeholder participation
- Job moves and partnerships between leading market participants
- Exclusive access to Africa Capital Digest’s full content archive
If you’d like more information on exceptional value group subscriptions for your colleagues and teams, please contact Teresa Hall at thall[at]africacapitaldigest.com today.