Onome Amuge
FCMB Asset Management Limited and London-based TLG Capital have fully deployed the first series of their jointly managed private debt fund, channeling capital into mid-market Nigerian companies in sectors ranging from agriculture to clean energy, in what investors describe as a milestone for the country’s private credit market.
The FCMB–TLG Private Debt Fund Series 1, which was oversubscribed, raised money from 16 investors across five categories, including some of Nigeria’s leading pension fund administrators and fund managers. The partners confirmed recently that all proceeds had now been allocated to five companies operating in areas considered critical to Nigeria’s economic resilience.
Beneficiaries include one of the country’s largest cocoa exporters, which secured financing to expand shipments; a leading domestic producer of medical consumables, supported to strengthen local health security; a well-established solar energy systems provider, granted working capital to widen off-grid power access and cut diesel dependency; and one of Africa’s fastest-growing technology companies, which is using the facility to expand digital platforms that formalise supply chains and help small businesses access inventory.
The fund’s managers said the initiative was designed to direct capital into sectors with clear economic and social multipliers while providing institutional investors with competitive risk-adjusted returns.
James Ilori, chief executive of FCMB Asset Management, said Series 1 indicated that alternative financing could bridge gaps left by the traditional banking system.
“Providing alternative access to suitable capital by mid-sized companies in sectors that align with the United Nations Sustainable Development Goals, while delivering competitive risk-adjusted return on investment to investors, are the key objectives of the FCMB–TLG Private Debt Fund. The Fund successfully met these objectives under Series 1, contributing meaningfully to Nigeria’s economic growth and development,” he said.
TLG Capital co-founder Isha Doshi said the deal underscored both local and international appetite for the asset class. “We’re seeing stronger private credit opportunities in Nigeria now than at any point in the last fifteen years. Through Series 1, we have proven that the asset class is investable at scale so that local institutions can participate with confidence,” she said.
Private credit has grown into a mainstream asset class globally, particularly as institutional investors seek diversification from traditional equity and fixed-income allocations. In Nigeria, however, its development has been constrained by regulatory bottlenecks, limited market depth, and macroeconomic volatility. Analysts say the oversubscription of the FCMB–TLG fund points to improving confidence among domestic pension managers, which collectively oversee more than N18 trillion in assets.
The deployment comes at a time when Nigerian corporates are increasingly squeezed by high borrowing costs in the commercial banking market, where lending rates often top 25 per cent. Mid-market companies, considered too large for microfinance but often overlooked by mainstream lenders, have been particularly vulnerable.
By offering senior secured financing with strict covenant protection and disciplined underwriting, the FCMB–TLG fund is seen as positioning itself as an institutional-grade product designed to plug this funding gap.
In response to what it called “strong investor demand and a healthy pipeline of opportunities,” the partners confirmed they would launch Series 2 of the fund in the coming months, continuing to target resilient mid-market operators in essential sectors.
