The Africa Merchant Capital Group is a privately
owned boutique merchant bank, providing corporate
finance advisory, trade finance and asset finance solutions
for mid-market businesses active in Sub-Saharan Africa

About Africa Merchant Capital

Africa Merchant Capital is a privately owned boutique merchant bank, focused on the high growth private markets of Sub-Saharan Africa. The AMC Group has specialist business units providing trade finance and asset finance to small and medium enterprises in the African mid-market and also provides market leading corporate finance advisory services. From the AMC Group balance sheet, we participate in renewable energy and last-mile fibre infrastructure projects in the region.

AMC fills a finance gap in the African private capital markets which is too small and insignificant for global financial institutions and too substantial to be funded by the local finance providers. The team draws from multi-disciplinary professional experience including corporate finance, merchant banking, investment management, consulting, advisory and personal investment in the region.

Our track record includes successful transactions in the FMCG, agri-processing, mobile media, real estate, mining, ITC and healthcare sectors from West to East and Southern Africa.

From our base in London, our business model is partnership driven. We travel to the region and work with chosen local partners to manage transactions and provide on-the-ground relationship verification and due diligence.

We come from Africa and are personally invested in Africa.

Team

Africa Merchant Capital Advisory Limited is a
corporate finance advisory firm dedicated to
the high growth markets of Sub-Saharan Africa

About AMC Advisory

AMC Advisory is the specialist corporate finance advisory business in the AMC Group with a dedicated focus on the high growth private markets of Sub-Saharan Africa.

The team draws from multi-disciplinary professional experience including corporate finance, merchant banking, private equity, logistics, healthcare, consulting, advisory and personal investing gained from global banks to SME’s.

Our corporate finance team advises on private middle market transactions with access to a range of different investor types from private equity funds, endowments and pension funds to Development Finance Institutions and family offices.

Services

Africa Merchant Capital Advisory approaches its services by taking the time to gain a deep understanding of our clients’ objectives. Typically, capital raising is achieved through either a discreet mandate approach or a broad market sweep to targeted funders and investors who participate in syndications, co-investment or club deals.

Capital Raising
  • Transaction structuring advice across the capital structure
  • Investor and marketing strategy advice
  • Financial modelling and preparation of marketing materials
  • Due diligence preparation
  • Private placement of equity and/or debt
  • Negotiation and closing
Buy-side Origination
  • Qualification and securing of investment opportunities on behalf of clients
  • Utilising established partner and referral network
  • In-country associates and partners
Bespoke Transaction Execution
  • Transaction project management
  • Commercial due diligence
  • Financial modelling

Client Profile

We prefer to work with clients whom we can qualify through our network and have a proven track record. We take time to get to know our clients and our aim is always to be long-term advisors who can support them through the life cycle of the business.

Our typical clients will have:

  • Significant operational exposure to Sub-Saharan Africa
  • Experienced, passionate and driven management team
  • Proven products and services with identifiable competitive advantages
  • Operating in high-growth sectors and countries
  • Transactions sizes of USD 10 million and over
  • Strong revenue growth year-on-year
  • At or near EBITDA profitability
  • Clearly defined growth plans and forecasts
  • Reasonable transaction expectations of owners and management

AMC Trade Finance provides bespoke structured
trade finance solutions, supporting African trade
through flexible, secured, pre- and post-shipment
trade finance loans

About AMC Trade Finance

AMC Trade Finance (AMCTF) provides flexible, secured, structured trade finance solutions.

Our model is transaction, rather than balance sheet driven, and our aim is to dramatically increase the availability of trade finance to inward and outward trade to selected African countries, with a particular focus on Sub-Saharan Africa.

The capital adequacy requirements of Basel III is making it increasingly difficult for banks to serve the multi-billion dollar African trade finance market.  AMCTF’s bank-friendly trade finance solution empowers banks to service their customers whilst working with us in parallel.

Our methodology requires no changes to standard trade finance bank processes and procedures. We take great care of applying International Chamber of Commerce (ICC) best practice tools and techniques to the benefit of both buyers and sellers when structuring our trade finance solution.

Our major value-add is that we substantially enhance our clients’ working capital profile, enabling them to scale, whilst in full collaboration with existing banking relationships and without impeding on the bank’s collateral.

The Trade Finance Model

AMCTF provides flexible transactional trade finance for reputable sellers, traders or buyers with regular transaction flow. We assess each opportunity carefully and structure our facilities to match the transaction timeline, profitability and perceived risk profile.

The Basic Criteria
  1. Goods flow from non-sanctioned countries
  2. The goods are pre-sold
  3. Gross Profit Margin of the goods sold exceeds 10%
  4. Client can afford the facility fee for the duration of the loan
  5. Client uses the facility to execute purchases & sales and not for general
  6. Client has the ability to participate in the transaction
The Basic Features
  1. The funding facility is transaction focused
  2. The funding facility is a short term position of 30-180 days
  3. The funding facility position is self-liquidating
Product Offering
  1. Off-balance sheet stand-alone transactional facilities
  2. Back-to-back LC facilities
  3. Co-financing LC with other institutions
  4. LC discounting
  5. Supplier cash payments
  6. Documentary Collections

Africa Merchant Capital Asset Finance (AMCAF) are
specialists in asset funding. More than just a finance
company, we offer a dynamic, dependable financial
partnership with our clients

We bring a unique understanding of asset finance
and have extensive experience in the movable asset
rental industry

About AMC Asset Finance

AMC Asset Finance is the specialist Asset Finance division of the Africa Merchant Capital group of companies.

Our asset finance and leasing solutions complement our existing trade finance, renewable energy and corporate finance advisory businesses, thus broadening our bespoke merchant banking solution to the high-growth private markets of Sub-Saharan Africa.

The operational asset finance solutions provide our clients with the flexibility to manage working capital in a fast-paced business environment. We focus on the local enforceability of the contracts and the sustainability and viability of the business being financed.

Benefits

Benefits to Suppliers

Satisfied clients:

Easy-to-understand rental finance for your client. Our off-balance sheet solutions will provide your client with the flexibility to manage working capital in a fast-paced environment.

Fastest approvals and payouts:

At AMCAF we understand that time is money in today’s fluid business world. Delays in approvals and the release of funding can be expensive for all parties.

Flexibility to optimise your asset base:

In a world where the only constant is change, AMCAF offers you the opportunity to upgrade or change equipment as needed. Upgraded equipment has the ability to increase revenue and profitability. Further, the optimal life span for assets is no longer determined by depreciation methods.

Choice of brands and equipment:

We understand the benefits of choice and do not limit ourselves to only a few brands or products. The flexibility this affords you will support your business growth and success.

Capacity:

At AMCAF we handle all the contractual requirements, leaving your sales force free to do what they do best – close deals.

Benefits to Clients

Procurement partner:

Our clients see us as their procurement partner – we buy the assets they need and they rent them from us. We do not impede on the clients’ existing relationships with other lenders.

Off-balance sheet lending:

The rental charge is treated as an operating expense. Since our finance solution does not increase the gearing of the business, current banking facilities are left unaffected.

Tax Benefits:

In most cases, wear and tear allowances in Africa are spread over longer periods than the actual useful life of the asset. Our rental solution allows clients to match the tax deduction with the actual life cycle of the asset.

Speed:

The period from application to pay-out is typically only four weeks.

Broad range of facility sizes:

Our facilities range from $1m – $15m.

Upfront cashflow requirements:

We require no deposit.

Flexible repayment terms:

We allow our clients to determine the funding period, up to a maximum of 60 months.

Funding Structure

We extend funding on the following basis:

  • Equipment lease structured on a straight-line basis, typically over 24 – 60 months
  • Off-balance sheet rental with no deposit
  • Deal sizes between $1m and $15m

Clients have a choice of two leasing structures:

Operating Lease:

  • No deposit – 100% rental finance
  • Off-balance sheet, improving gearing levels
  • Full rental is a tax-deductible expense
  • Preserve working capital

Sale and Leaseback:

  • Restructure your balance sheet:
    • Raise working capital that can be invested into stock and generate a higher return
    • Improve gearing levels
  • Take advantage of future tax benefits

Africa Merchant Capital Infrastructure is a
permanent capital vehicle invested in
infrastructure assets across Sub-Saharan Africa

About AMC Infrastructure

Africa Merchant Capital Infrastructure (“AMC Infra”) draws on the multidisciplinary experience and skills of the AMC Group to invest in assets that match a long term hold strategy. We typically invest in late stage development infrastructure assets primarily in the telecoms, logistics and energy space, by partnering with like-minded investors and entrepreneurs.

By adapting our merchant bank philosophy, we help bring projects in development to fruition and we are continuously interested to hear from project owners who need additional funding to bring their high return, large-scale projects to financial close.

Telecommunications:

  • Fibre assets
  • Tower assets
  • Wifi penetration strategies
  • Data centres

Logistics:

  • Warehousing
  • Long term concessions with off-take agreements

Energy:

  • Small, mid and utility scale solar
  • Storage

Contact Us

UNITED KINGDOM OFFICE

Linen Hall
162-168 Regent Street
London
W1B 5TB

+44 (0)2037 457 030

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SOUTH AFRICA OFFICE

Stellenpark Business Park
Cnr R44 and School Road
Stellenbosch
7600

+27 21 276 3280

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