The equity-linked debt approach at the core of 46 Parallels’ investment philosophy is different to traditional methods of investing in Sub-Saharan Africa (SSA): it is neither private equity nor long-only equity investing in public markets. This strategy fills a funding gap that exists today in a crucial segment of the SSA market and remains overlooked by both local and international capital providers.
46 Parallels combines extensive first-hand knowledge of SSA and broader emerging markets investment strategies, leveraging deal history, an established African presence and developed-market banking pedigree. Furthermore, 46 Parallels offers a far more liquid structure for investors who, until now, have had to rely on the growing number of private equity funds to invest in Africa.
By investing in what are predominantly debt instruments, 46 Parallels ensures that investors in the Fund are offered a higher level of downside protection than that provided by private equity funds. Risks are further mitigated through collateral attached to these loans and other appropriate security packages. Meanwhile, returns to investors are enhanced through upside options in the form of warrants. We take a holistic approach to risk management, with all risks holding equal weight of consideration, whether investment, business or sustainability focused.