Sthenic Finance and Advisory Limited (“Sthenic”) is a structured finance and
investment company with special focus on supporting growth business at
resolving short and medium term liquidity challenges through innovative financing
products and structures.

Special Situation Private Debt Fund (SSDF)

Growth financing is about timeliness; situation oriented. The shortage of adequate finance to mid-market corporates and small companies in Sub Sahara Africa is estimated at $140 billion by IFC. We understand that these corporates continue to deliver structurally superior growth and investment prospects than peers in the developed market where private equity has become inadequate, and traditional financing unavailable. Our special situation debt approach meets growth companies at the point of their needs.

We help businesses bridge liquidity gap, fulfill opportunistic deal and grow.

Proprietary Origination
  • Unique access to investments
  • Deeper value
  • Less competition
  • Better selection
Value Add/Creation
  • Funding adequacy
  • Governance/Processes
  • Intelligence
  • Leadership
Pure Instrument
  • Smart debt
  • Mezzanine
  • Collateralized for full value
Depth of Local Network
  • Partners relationship in target markets
  • Access to value oriented deal flows
  • Value ecosystem
Value Add/Creation
  • Large alpha space that create risks retention buffers
  • Competitive Risk processes and terms
  • Dynamic downside risk management

Our Proposition

Deep Value Investing
  • Target corporates with minimum monthly EBITDA margin of 10%
  • Growth sectors that benefits from urbanizing population and/or strategically important to economic diversification
  • Deliver long-term growth above GDP
  • Using timely, secure high yield debt and mezzanine instruments to unlock value for investors and mitigate downside risk.
  • Corporate Governance / Internal Controls
Local Networks & Partners
  • Banking relationships; commercial and microfinance
  • Relationship with NBFI-factoring in invoice discount players.
  • Close relationships with top of range professionals in supporting services (consultants, brokers, lawyers, and accountants)
  • Operation and trade partners

SSDF 1 Value Added

Experience

Boots on the Ground

Growth Support

Proprietary Research Capabilities

Corporate Governance / Internal Controls

Growth Finance

Sthenic Opportunistic Fund (SOF)

Background
  • The over 17 million small and medium scale businesses in Nigeria, an emerging macroeconomy, present a peculiar demand curve of the funding market for this segment.
  • Demand for funds are high and barely responsive to changes in the yield environment.
  • Demands for funds are high and barely responsive to changes in the yield environment.
  • SOF has a 360 degrees approach to a structured funding assurance for diverse small and medium sized businesses and projects in Nigeria.
  • Sthenic Finance and Advisory Limited is a local fund manager with a combined history of over 10 years investing in Nigeria.
  • The SOF invests in various opportunities using debt at yields in the range of 5%-10% per month. It has delivered in excess of 6% per month in average monthly portfolio yield over the past six months.
  • It is an open-ended fund curated to meet the need of local investors for structured high yield investments outside the traditional banks.
  • SOF promotes to investors short term, and transaction linked fixed return with the assurance of entry and exit flexibility.
Fund Profile

Name

Sthenic Opportunistic Fund (SOF)

Fund Size

Target: NGN1 billion

Fund Life

Open Ended

Strategy

  • Opportunistic approach to identifying, selecting and investing in transactions
  • Leverage our deep markets relationship network to originate, diligence, and create value
  • Risk sensitive approach to pricing and deal structuring
  • Project management approach to deal derisk.
  • Strong use of peer collateralization.
  • Speed

Focus

  • Sector Focus: Agnostic
  • Instrument Focus: high yield debt

Returns & Fees

  • Target Return: 2-4% per month (24%-48% per annum) fixed yield to investor (competitive and sensitive to yield environment)
  • Manager’s Fees: Spread Retention

Parties

Investment Manager: Sthenic Finance & Advisory Limited

Our Approach