Gulf Capital, an alternative investment firm in the Middle East, has partnered with Serengeti Capital, an Africa-focused investment bank, to expand its private debt business to Sub-Saharan Africa.

Through this partnership, Serengeti Capital will be advising on credit and mezzanine investment opportunities in Sub-Saharan Africa for Gulf Capital’s second generation private debt investment fund, which will also look at investing in defensive non-cyclical sectors in the Middle East, North Africa and Turkey.

Francis Kalitsi, Managing Partner and co-founder of Serengeti Capital, said: “We are delighted to form this strategic partnership with Gulf Capital, which will utilize our deep trenched global and African experience and our successful advisory and investment track record on the continent.”

“This agreement is testament to the expertise of our team and its ability to consistently perform to best-in-class international standards across the complex African markets. Serengeti Capital is very well placed to advise and assist Gulf Capital’s private debt team to expand in Africa and to meet the growing demands of clients and investors here,” he said.

Gulf Capital’s private debt arm, Gulf Credit Partners, has recently announced the first closing the Gulf Credit Opportunities Fund II at $175m.

The company’s first fund, which closed at around $221m in 2013, is now fully invested.

Walid Cherif, Managing Director and Head of Gulf Credit Partners, said the appointment of Serengeti Capital as an exclusive adviser and partner for Sub-Saharan Africa is in line with the company’s strategy.

“It is a trusted partner that enjoys extensive industry relationships and is uniquely positioned to add significant depth to our business on the continent. Small and Medium Size Enterprises (SMEs) and mid-market companies in Africa lack access to financing as banks tend to focus on asset-backed financing and blue chip companies,” he said.

“Together with Serengeti Capital, we can offer the most promising asset-light, mid-market growth companies flexible and bespoke financing solutions that will add substantial value to their businesses and help them capitalise on sector opportunities that Africa presents them with. Starting with countries in the West Africa region, we will then expand across the rest of the continent,” he added.

According to Dr Karim El Solh, CEO of Gulf Capital, Sub-Saharan Africa has great economic and demographic fundamentals, coupled with a growing demand for private debt financing.

“It is today undergoing a rapid transformation towards urbanization, supported by one of the fastest real GDP growths in the world, exceeding 5% annually for the next three years,” he said.

“Our partnership with Serengeti Capital and our expansion from the Middle East and North Africa into Sub-Saharan Africa is part of our strategy to become one of the leading alternative investment managers in emerging markets,” he said.

“A large number of our portfolio companies operate today along the new East-West corridor from Asia Pacific and South East Asia to the Middle East and Africa. We look forward to our partnership with Serengeti Capital and to increasing our investments across Africa,” he added.