Sanlam Alternative Investments has more than R100bn in credit exposure generated through its Specialised Credit business, which provides, among others, structured capital solutions to South Africa’s mid‑market corporates.
Mid‑market companies remain one of the country’s most important engines of economic growth. While large corporates often dominate headlines, mid‑sized businesses drive employment, innovation and regional economic activity. Together with SMEs, they form the backbone of the South African economy, contributing significantly to GDP and supporting thousands of jobs nationwide.
Mid-sized companies occupy a unique position in the market. They often have the scale, operational sophistication and financial discipline of larger corporates, while retaining the agility and entrepreneurial mindset needed to respond quickly to changing market conditions. Many also play a critical role in sustaining economic activity in secondary cities and undercapitalised regions.
“Recognising the importance of this segment, Sanlam Alternative Investments has expanded the capabilities of its Specialised Credit business, with an increasing focus on delivering structured capital solutions to high-quality mid-market corporates,” says Paul Pretorius, Principal: SA Debt Finance at Sanlam Alternative Investments. “The objective is clear: to provide businesses with access to capital structures that support expansion, strengthen balance sheets and unlock strategic opportunities.” Two value-adding transactions aligned to this approach have been concluded recently, with additional opportunities in the pipeline.
Supporting financial inclusion through private credit
Sanlam Alternative Investments provided a bespoke four-year R200m facility to a leading provider of unsecured consumer finance. The funding will support the continued expansion of the company’s lending activities, enabling broader access to credit for consumers who often have limited access to traditional bank finance.
“By increasing the lender’s capacity to extend responsible credit, the facility contributes directly to financial inclusion within underserved communities,” Pretorius says.
The funding also enabled the refinancing of existing debt on more favourable terms, strengthening the company’s capital structure and improving operational flexibility. Reflecting the tailored nature of the financing, the structure includes lengthy availability and capital holiday periods, providing management with additional flexibility to execute its growth strategy.
Financing for a national FMCG business
Separately, Sanlam Alternative Investments concluded a R350m transaction with a leading FMCG group that operates a national distribution platform serving suppliers, customers, including South Africa’s major food retailers, and independent third parties.
Recognising the specific operating characteristics and cash flow profile of the business, the funding package was structured through three distinct facilities with maturities extending up to five years. The customised approach ensured that repayment obligations were appropriately aligned with expected cash generation, supporting both liquidity management and long-term financial sustainability.
“In addition to optimising the group’s funding profile, the facilities enabled the refinancing of existing debt at more competitive rates, enhancing overall capital efficiency and positioning the business for continued value creation,” says Pretorius.
The next chapter for private credit in South Africa
The recent deals form part of Sanlam Alternative Investments’ strategy around private credit, an asset class that has grown as a funding channel for South African companies outside traditional bank lending. The Specialised Credit business offers financing across the capital structure, including senior debt, mezzanine finance and preference share capital, for uses such as acquisitions, refinancings, capital restructurings and management buyouts.
“For businesses, access to fit-for-purpose solutions can create opportunities to invest, expand and strengthen operations. For investors, the asset class offers diversification benefits and access to high-quality private market exposures capable of generating attractive risk-adjusted returns,” says Wayne Viljoen, Head: Specialised Credit Origination.
“At Sanlam Alternative Investments, our focus is on partnering with robust businesses with strong management teams and providing solutions that align with their strategic objectives and cash flow profiles,” Pretorius says. “We believe that South Africa’s mid-market corporates represent a significant and enduring opportunity, and these recent transactions illustrate this in practice by deploying capital where it can support business expansion and contribute to broader economic development.”
Disclaimer: Sanlam Investments consists of authorised financial services providers in terms of FAIS and disclaimers can be viewed on www.sanlaminvestments.com