Key Takeaways
- • Sanlam Alternative Investments has more than R100bn in credit exposure generated through its Specialised Credit business, which provides structured capital solutions to South Africa's mid-market corporates.
- • Sanlam closed a bespoke four-year R200m facility with a leading provider of unsecured consumer finance, refinancing existing debt on more favourable terms.
- • Sanlam concluded a R350m transaction with a national FMCG group, structured as three facilities with maturities of up to five years.
- • The Specialised Credit business offers financing across senior debt, mezzanine finance and preference share capital for acquisitions, refinancings, restructurings and management buyouts, with additional opportunities in the pipeline.
Summary
Sanlam Alternative Investments has built more than R100bn in credit exposure through its Specialised Credit business, according to the firm's article in Financial Mail. The business provides structured capital solutions to South Africa's mid-market corporates, which the firm describes as a key engine of employment, innovation and regional economic activity alongside SMEs.
Two recent transactions illustrate the strategy. Sanlam provided a bespoke four-year R200m facility to a leading provider of unsecured consumer finance. The funding is intended to support the lender's expansion and broader access to credit for consumers with limited access to traditional bank finance. It also enabled the refinancing of existing debt on more favourable terms, and the structure includes lengthy availability and capital holiday periods.
Separately, Sanlam concluded a R350m transaction with a leading FMCG group operating a national distribution platform that serves suppliers, major South African food retailers and independent third parties. The package was split across three facilities with maturities of up to five years, aligned with the group's expected cash generation, and refinanced existing debt at more competitive rates.
Paul Pretorius, Principal: SA Debt Finance at Sanlam Alternative Investments, said the firm focuses on partnering with robust businesses with strong management teams. Wayne Viljoen, Head: Specialised Credit Origination, said private credit offers investors diversification and access to private market exposures capable of generating attractive risk-adjusted returns. The article presents private credit as a funding channel for South African companies outside traditional bank lending.
Two recent transactions illustrate the strategy. Sanlam provided a bespoke four-year R200m facility to a leading provider of unsecured consumer finance. The funding is intended to support the lender's expansion and broader access to credit for consumers with limited access to traditional bank finance. It also enabled the refinancing of existing debt on more favourable terms, and the structure includes lengthy availability and capital holiday periods.
Separately, Sanlam concluded a R350m transaction with a leading FMCG group operating a national distribution platform that serves suppliers, major South African food retailers and independent third parties. The package was split across three facilities with maturities of up to five years, aligned with the group's expected cash generation, and refinanced existing debt at more competitive rates.
Paul Pretorius, Principal: SA Debt Finance at Sanlam Alternative Investments, said the firm focuses on partnering with robust businesses with strong management teams. Wayne Viljoen, Head: Specialised Credit Origination, said private credit offers investors diversification and access to private market exposures capable of generating attractive risk-adjusted returns. The article presents private credit as a funding channel for South African companies outside traditional bank lending.
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