Proparco, Calvert Impact, Africa Re, Swedfund, IFC, Tsao Family Office and TLG announce $120m second close of "BOMA" African Private Credit fund to support SMEs
Proparco, Calvert Impact, Africa Re, Swedfund, IFC, Tsao Family Office and TLG Capital announce the $120m second close of the TLG Africa Growth Impact Fund II (AGIF II), reinforcing their shared commitment to scaling innovative private credit solutions for African SMEs. The second close reflects continued confidence in the fund’s approach to expanding access to finance across underserved markets, with additional commitments from new investors and increased participation from several existing backers. The second close coincides with the successful exit from AGIF I by Swedfund, who has increased allocation to AGIF II. AGIF II has attracted 22 investors, with 48% of committed capital sourced from outside the DFI community — reflecting growing market conviction in African private credit as an institutional asset class.
TLG Africa Growth Impact Fund II (AGIF II) has announced $120m in capital raised at second close to provide innovative private credit financings for African small-and-medium-sized-enterprises (SMEs). The second close is led by Proparco and Calvert Impact Capital, a subsidiary of US-based impact investing firm Calvert Impact, alongside six additional new investors and increased allocations from several first close investors including Swedfund. AGIF II now includes 22 investors alongside a strategic partnership with the UK FCDO through its Manufacturing Africa program.
In the year since the fund's $75m first close in April 2025, AGIF II has already invested in nine SMEs across seven countries and seven sectors, with debt facilities ranging from $5m to $15m to each company. The fund is among the first private credit strategies to focus on underserved geographies, including 59% of total capital invested in UN Least Developed Countries and an additional 19% of total capital invested in World Bank Conflict-affected Situations.
AGIF II finances African SMEs through a proprietary approach called BOMA—Bank Originated & Mitigated Assets—whereby TLG originates loans to African SMEs directly through local banking partners across the continent. Each loan is structured with a longer tenor than African banks typically offer and is backstopped by a guarantee from the originating bank, securing 100% of principal. The result is a product that provides African SMEs with the financing runway they need to grow, while replacing SME credit risk with the institutional obligation of a regulated African bank.
TLG AGIF II's portfolio today sustains 850 jobs spanning companies from Guinea to Zambia. We have traced the use of our capital to profound impact: recycling an Eiffel Tower of additional aluminium each year in Nigeria, connecting 18 new regions with fiber internet in Djibouti, and financing lower-cost schools educating more than 20,000 additional children in Kenya. AGIF II exists to bring African SMEs the financing they need to grow. TLG does this with an innovative structure that makes commercial sense for global investors and impact sense for communities across the continent.
Isha Doshi
Co-Founder of TLG Capital
For over 30 years Calvert has been and continues to be incredibly selective with whom we form financing partnerships. Particularly in jurisdictions and regions with elevated perceived and real risk characteristics. TLG has demonstrated a unique ability to innovate whilst providing meaningful downside protection in line with what commercial private capital requires.
Maya Burney
Senior Officer at Calvert Impact
We are proud to invest in TLG AGIF II as our first private credit fund investment in Sub-Saharan Africa. After scouting the whole market, Africa Re felt that TLG's approach of mitigating downside with guarantees from African banks is precisely the form of downside protection that will allow private credit to become investable for institutional investors across the African continent. Traditional private credit in Africa has presented challenges from an enforcement and risk perspective, and TLG's team has developed a scalable solution to these problems, making African SME private credit ready for commercial capital.
Dr Corneille Karekezi, PDG d’Africa Re
GMD/CEO of Africa Re
Financing SMEs in Sub-Saharan Africa requires mechanisms that help mitigate credit risk and improve investment conditions for international investors. Through its BOMA approach, TLG seeks to address some of these challenges by incorporating guarantees from African banking institutions. Proparco believes this structure may help expand financing opportunities for SMEs in frontier markets while offering an adjusted risk profile for investors.
Tibor Asboth
Head of Africa and Middle East Private Equity at Proparco
The second close of AGIF II confirms TLG’s commitment to mobilize capital to support the sustainable growth of SMEs and preserve jobs in Sub-Saharan Africa. Asset recovery allows financial institutions to free up capital for new lending, ultimately restoring the flow of credit to households to stimulate broader economic growth.
Aliou Maiga
IFC’s Financial Institutions Group Director for Africa
At Tsao Family Office we seek opportunities where impact and commercial opportunities are aligned. In low income countries they often are. We wouldn’t have the access or expertise to originate or structure these innovative financings. Thanks to TLG Capital for helping us deploy our capital for profit and purpose.
Bryan Goh
CEO of Tsao Family Office
Through continued engagement with AGIF II, Swedfund helps address a critical financing gap for SMEs in Africa. Flexible and tailored credit solutions are directed to viable companies facing temporary cash flow constraints, safeguarding jobs while enabling businesses to recover, grow, and generate new sustainable employment opportunities.
Jonas Tornblad
Investment Manager at Swedfund
The fund focuses on Africa's least developed countries, promoting gender equality, local ownership, sustainable industrialization and decent work—aiming to demonstrate that strong development outcomes and strong returns can go hand in hand. TLG Capital and AGIF II qualified for Gender 2X Challenge and the ImpactAssets 50 in 2026.
