Helios Credit Partners, L.P.
Last updated 11 May 2020, by Impactyield.
Helios Credit Partners, L.P. was established to capitalize on the significant and growing gap between supply of and demand for direct lending to African businesses by making loans to public and private companies across Africa. The fund’s investment strategy is to build a diversified portfolio of dollar-denominated loans to healthy, cash generative African businesses, with the objective of generating mid-teens unlevered returns, augmented by structural enhancements to minimize downside risks, and upside features to capture additional value.
Given the limited availability of both senior and mezzanine debt across Africa and the lack of structuring flexibility available, there is currently a significant unmet demand for debt funding. The opportunity encompasses a broad range of first and second lien loans, convertible loans, shareholder loans and different forms of cash-flow and asset-backed financings. Domestic credit provision to the private sector is low despite strong GDP growth, and Helios believes that low levels of financial intermediation have translated into a severe shortage of private sector credit which is unlikely to be addressed in the medium term. Availability of bank lines is limited, and local debt capital markets do not provide a viable alternative as most countries in Africa lack functional or deep corporate bond markets.
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Key performance indicators
Asset manager: Helios Investment Partners
Product track record: Fund has 7 years of track record
Target IRR: 14%
Committed Capital: 120,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Cayman Islands
Product status: Open - committed capital
Style/Stage: Mezzanine Finance
Inception year: 2016
Vintage year: 2017
Target region: Africa, Emerging countries
Target close date: 01/12/2017
Product term: 9 year term
Assets under management: 300,000,000 USD (US Dollar)
Investment size: Min: 15,000,000; Max: 35,000,000; Avg: 0
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 3
Fund investments to date exited or repaid: 0
Management fee: 1.75%
Carried interest: 20%
Hurdle rate: 8%%
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: Overseas Private Investment Corporation
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: +44 20 7484 7700
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Investor Relations Partner
By having a dedicated focus on African markets, Helios Credit supports the growth of healthy, growing African companies by providing appropriately structured, flexible, commercially viable and otherwise fit-for-purpose credit. Our investments, in addition to generating a financial return to investors, also have immense impact across the continent, contributing to economic growth as well as creating lasting positive social and environmental benefits. To date, our credit investments have had the following impact: job creation, capacity building, community development, care for the environment, and enhancing access to affordable housing.