IFC proposes $7.5m investment in Cauris fund

For a breakdown of West African transactions , visit our Dealmaker’s Log . The International Finance Corporation (IFC) has disclosed a proposed investment of up to $7.5 million in Cauris Finance’s Third Wave Fund, a structured debt fund targeting tech-enabled lenders across Africa. The fund is managed by Cauris Investment Management, a US-based credit investment firm. The fund is targeting $75 million, with a hard cap of $100 million. IFC’s proposed investment would comprise a loan in the fund’s senior debt tranche. The proposed loan would have a five-year term, including a grace period of up to 48 months, followed by a 12-month amortisation period. The fund’s capital structure comprises 60% senior debt, 30% mezzanine debt and a 10% first-loss tranche, providing 40% subordination beneath the senior debt tranche. Approximately 40% of the fund’s capital will be allocated to the mobility sector, financing vehicle lease-to-own fintech companies serving entrepreneurs and gig-economy workers. The remaining 60% will target fintech lenders providing working capital to micro, small and medium-sized enterprises. Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Access the latest Dealmaker’s Log hereRead More