ALTICA CREDIT
More than injecting captical
Altica Credit combines public and private credit strategies to give institutional and impact conscious investors holistic access to the African opportunity
Strategies
Private Credit
Complete financing solutions to African businesses providing growth capital using a variety of flexible structures including:
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Senior Secured
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Subordinated debt
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Unitranche loans
Fixed
Income
Invests primarily in African public debt
Provides investors with:
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Enhanced portfolio diversification
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Attractive yields and Sharpe ratios
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Modest correlation with major credit markets
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Access to often misunderstood markets with unique characteristics
USD330 bln
Credit
Gap
46
Sub-Saharan
Countries
5
Specialist
Industries
Our goal is to promote job and wealth creation in Sub-Saharan Africa, helping businesses access markets and compete fairly with multi-national companies. We bridge the credit gap by deploying capital to strategically important sectors in order to promote economic diversification fuelled by the growth of local companies, resulting in increased exports, import substitution, lower trade deficits, foreign exchange generation and mass employment creation.
Private Credit: Our belief is that attractive investment opportunities lie in the middle-market and that a blend of credit products provide the safest means of accessing them. A critical mass of indigenous companies exists in this space whose growth has been hampered by a lack of available funding and suitable structures.
Fixed Income: Designed to offer an alpha/income-generating portfolio solution to yield-seeking investors. We believe our unique total return strategy, which operates within a hedge fund style framework, is the optimal vehicle to provide investors with exposure to the ‘next generation’ of emerging markets. It is also strongly aligned with our dedication to developing African capital markets.
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We believe a strong sovereign risk framework supported by currency and commodity price volatility resilience testing underpins African private and public market investment selection.
Altica Credit Approach
A tailored and dynamic approach to investing in Africa.
Investment Approach
Altica’s sovereign and global macro framework is integrated across the firm’s investment strategies. In fixed income, the emphasis is on assessing economic resilience, creditworthiness and identifying vulnerabilities. In private credit, our sovereign analysis jointly reinforces an investment case with respect to country selection. At a corporate level, our stress and scenario testing enables us to analyse sensitivities to macro factors, and to implement a hedging programme accordingly.
Private Credit
In most African countries, the middle-market is the largest contributor to GDP and employment, where private-sector funded lending can complement traditional banks.
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Altica Credit aims to arrange flexible financing packages for middle-market companies, provide the capital and develop a close partnership with management. Our structures provide investors with access to attractive returns and more control.
Agribusiness
Media & Technology
Import Substitution
Healthcare
Energy & Climate
Financial Services
Focus sectors: agribusiness, energy and climate, financial services, healthcare, import substitution, media and technology.
Structured Origination
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Multi-layer Due Diligence
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Risk Assesment & Mitigation
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Partnership Approach
Risk
Assessment
Commodity Prices
Currency
Political
Global Macro
Fixed Income
Global investors are under-allocated to African markets, yet higher yields and Sharpe ratios offer substantial compensation for taking risk, particularly relative to mainstream emerging and developed markets.
We see compelling structural opportunities in the world’s 'next generation' of emerging markets - a heterogenous set of economies with distinctive growth prospects, macro policies, political systems and financial cycles.
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To capture the ‘alpha story’, we differentiate between improving countries with the potential for positive catalysts vs those which are deteriorating and vulnerable. Our strategy focuses on identifying economic resilience, momentum and secular trends; as well as disequilibrium and dispersion across capital markets.
Focus: African sovereign and corporate credit.
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Multidisciplinary research approach
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Focus on asymmetry and capital preservation
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Unconstrained, total return strategy
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Advanced risk management
We regard risk management and trading as integrated disciplines. Our sophisticated technology platform provides us with an unsurpassable level of granularity and transparency. It enables us to view exposures and sensitivities, as well as conduct scenario analyses and stress tests, on a realtime basis, thereby facilitating the optimisation of portfolio positioning.
