TLG Capital (TLG) and United Gulf Financial Services North Africa (UGFS NA) announced that they have been appointed as the joint fund manager for the Empower Fund, an initiative launched by Caisse des Dépôts et Consignations (CDC Tunisia).
Several countries around the world have plans and initiatives to catalyse their economies with capital injections into private sector companies, which constitute the fabric of the local economy. It is within this framework that the Tunisian Caisse des Dépôts et Consignations (CDC Tunisia) has committed to mobilise 700m Tunisian dinars (c.US$250m) across 5 funds. CDC Tunisia is the anchor investor in these, committing 40% of the capital across each fund.
This commitment from CDC Tunisia is categorised as the “Emergency Fund”. The remaining 60% would be raised from international and developmental financial institutions. The Empower Fund is the largest of the 5 funds initiated by CDC Tunisia, deploying c.300m Tunisian dinars or c.US$100m, into the economy. The EMPOWER fund will be split into two categories A and B.
The Empower Fund will invest in resilient Tunisian companies with validated economic models which operate in strategic sectors with high growth potential. The Empower Fund B expects to make investments starting from 5 MTND to 15 MTND (US$1,5 million à US$5 millions) each, throughout its fund life.
Nejia Gharbi, Interim General Manager, CDC Tunisia said:
“CDC Tunisia, the Public financial arm and long-term Impact investor but also countercyclical investor, with the advent of the pandemic was completely inside of its vocation. Since it is during difficult times that the CDC’s model fully plays its role. CDC Tunisia responded from the first hours, and the 5 funds were set up in record time. The achievements follow one another and today it is around “EMPOWER B” to begin its momentum.”
Karim Bououni, Business Unit Manager, CDC Tunisia, commented:
“As recommended by its investment doctrine, CDC plays a demonstrative role. Role confirmed by the launch of “EMPOWER Fund” which is the targeted response dedicated to efficient and resilient Tunisian companies, of intermediate size and champions of the local economy, by offering them the possibility to invest in innovation, to improve their productivity, to move up the value chain and develop new export markets so that they can straighten their growth trajectories after the Covid-19 crisis.”
Slim Chakroun, Private Equity Manager, CDC Tunisia:
“EMPOWER Fund, targets companies capable of investing more and achieving sustained growth if an Equity or quasi-Equity instrument is offered to them. EMPOWER B represents a complement to the existing offer on the market since the investment tickets offered by this new fund, ranging from 5 to 15 MTND, are not sufficiently covered.”
Mohamed Salah Frad, General Manager, UGFS North Africa:
“This new project is in line with our strong partnership with the Tunisian government via the CDC. This affirms also our role and know-how in supporting and accompanying Tunisian SMEs as well as our vision to be among the active players in the ecosystem to support and boost the national economy alongside our partner TLG Capital.”
Ahmed Dhouib, Principal, UGFS North Africa:
“We are proud to be part of this initiative that confirm our unique position as leading private equity fund manager in Tunisia known to be a Hands-on investor supporting successful companies with promising growth prospects. We aim through our partnership with CDC Tunisia and TLG Capital to help Mid-sized Tunisian companies to achieve operational excellence, compete internationally and provide superior returns for our investors.”
Zain Latif, Principal at TLG Capital:
“We are delighted to have been selected alongside UGFS NA as co-Managers of the Empower Fund by CDC Tunisia. Investing alongside best in class local asset managers like UGFS NA allows TLG to leverage our region wide deal experience into more tailored solutions for Tunisian companies. We are looking forward to developing our partnership with UGFS NA as we seek to invest across growth companies in the Tunisian market.”
Saad Sheikh, Principal, TLG Capital, said:
“This landmark initiative and commitment from CDC Tunisia demonstrates its resolve to bolster its economy and build-back better and stronger, after COVID-19. We, at TLG, believe in double bottom line: sustainable investing through robust commercial returns while creating impact. We expect the critical financial and technical support offered to Tunisian SMEs, through the Empower Fund, to facilitate job growth, stimulate productivity, and enhance economic activity in Tunisia, and beyond.”
About CDC Tunisia: A long-term public impact investor, acting in the service of the general interest, intervenes in Equity or quasi-Equity. Created in 2011, it contributes to develop Tunisian financial market by providing depth and stability. CDC Tunisia is a trusted third party, governed by the rules of commercial law, its intervention is minority. It operates under the Public Private Partnership mode. CDC Tunisia is already MSI 20000 & CSR Label certified.
About TLG Capital: TLG Capital is an award-winning investment holding company which focuses on private investment opportunities across the capital structure. In a short span of time, the firm has built a reputation for achieving superior commercial returns with a social impact. It has garnered the backing of some of the most prominent and reputable investors in the alternative investments space. TLG Capital is forming this joint venture through its TLG Africa vehicle.
About UGSF NA: UGFS-NA manages 12 investment funds. Through which, it has succeeded to invest in more than 100 companies for a total investment of 120 million dinars. These investments have contributed to the creation of 2,324 direct jobs throughout Tunisia. It should also be noted that among its funds, UGFS-NA manages the Social Business fund which works on job creation and has been certified IMS (Impact management system). UGFS NA is already ISO 9001 certified ongoing.