Singapore family office backs African private credit fund
Tsao Family Office sees potential further investments in the region
Singapore-based Tsao Family Office, set up by the family behind maritime conglomerate Tsao Pao Chee Group, has made only its second Africa-focused investment by backing a private credit fund managed by TLG Capital. While still exploring opportunities in Africa, the family office says it sees potential for both commercial returns and positive social impact – a key part of its strategy.
Tsao Family Office invested an undisclosed amount in TLG Capital’s Growth Impact Fund II, which by April had attracted US$75m in commitments towards its US$200m goal. The fund has an unconventional approach of working through local African banks that have viable – but underperforming – small and medium-sized enterprises on their loan books. Many of these businesses need longer-term US dollar financing to support their growth, but instead are saddled with short-term loans carrying high interest costs, leaving them without the breathing room required to scale.
Local banks are typically not in a position to extend such long-term US dollar loans. That is where TLG steps in, providing longer-dated capital to these businesses, coupled with active operational support. In some cases, TLG places one of its team members onsite for the first 100 days of the loan to help improve performance – an intervention that falls outside the remit of most banks.
TLG requires a 100% guarantee on the original loan amount from its partner banks, using this not only as downside protection but also as a way to assess the bank’s confidence in the borrower. Because the banks already know their clients and have full visibility into their financial activity, TLG can rely on them to identify businesses that are fundamentally sound but need more appropriate loan terms to grow. In return, the banks earn a fee for providing the guarantee and stand to benefit further if the businesses succeed through higher-margin services such as foreign exchange and letters of credit.
One example of such a transaction was when TLG extended a US$10mn debt facility to the largest aluminium recycler in Nigeria. The company had recently acquired new machinery but lacked the financing needed to secure reliable power. It also relied on manual, paper-based systems that limited its ability to scale. TLG partnered with the recycler’s bank to inject new capital, and implemented a hands-on business support plan. The bank provided a 100% guarantee on the loan. TLG financed new generators, placed a chartered accountant within the company, and helped convert its paper inventory and accounting systems into digital platforms. It has also worked with the company to integrate a solar mini-grid to stabilise energy supply.
The Tsao Pao Chee Group traces its roots to China in the late 1800s and has evolved over four generations from a traditional shipping business into a multinational enterprise. The group relocated to Hong Kong after the Second World War and later to Singapore in 1991. The Tsao Family Office, established more than a decade ago, manages investments across public equities, fixed income, alternatives and real estate. It typically deploys between US$5m and US$20m per investment.
Leslie Lim, who leads Tsao’s fixed-income portfolio, told ImpactAlpha that TLG’s model was unfamiliar to him and involved some risk, but one the firm was prepared to take given its impact mandate. He noted that the structure of the loans, being in US dollars, removes some uncertainty. For foreign investors – who typically measure returns in US dollars – a rapidly depreciating African currency, such as seen in Egypt or Nigeria, can easily wipe out gains.
Tsao Family Office’s only other African investment to date was in Chancen International’s Future of Work fund, which backs education in sub-Saharan Africa. Lim believes the experience with TLG could pave the way for further investments in the region, as the firm expands its network and deepens its understanding of the market.
References
'TLG Capital invests in Nigerian recycling plant', Africa Private Equity News, 13 June 2024
'TLG Capital fund reaches first close', Africa Private Equity News, 02 May 2025
'From Singapore, Tsao Family Office expands the LP pool for impact strategies in Africa', ImpactAlpha, 12 August 2025
'TLG Capital', ImpactAssets, Accessed on 20 August 2025
'Linkedin post', Isaac Marshall, August 2025
