Michelmores has advised Verdant Capital Hybrid Fund on its $3million investment in Bfree, a leading digital and ethical credit collection company operating across Africa.
The investment will support Bfree’s distressed loan portfolio financing model, enabling the company to purchase and recover distressed loans from inclusive financial institutions. Bfree’s technology-led approach helps improve repayment rates, restore borrowers’ credit scores, and return much-needed capital and liquidity to the financial sector.
The transaction is aligned with Verdant’s focus on financial inclusion and impact investing in emerging markets. In addition to financing, Bfree will benefit from capacity-building support via the Verdant’s technical assistance facility.
The Michelmores team advising on the deal was led by Partner in the Firm’s Banking, Restructuring & Insolvency team, Karen Williams, alongside Managing Associate Danielle Collett-Bruce and Trainee Solicitor Meg Heaney.
Karen Williams commented:
“We’re proud to have supported Verdant Capital on this investment, which aligns commercial innovation with genuine social impact. Bfree’s model is helping to transform distressed debt management in Africa by enabling inclusive financial institutions to recycle capital, while giving borrowers a pathway back to financial health. It’s a compelling example of how investment can drive both financial return and systemic change.”
Established in 2020, Bfree has supported over 6.6 million borrowers. Its ethical, data-driven model is reshaping the approach to non-performing loans across the SME and retail lending space in Africa. This investment marks another key step in Verdant Capital’s mission to build impactful, scalable financial solutions in frontier markets.
Michelmores’ Banking & Finance team’s strengths lie in understanding our clients’ greater commercial objectives and supporting them to achieve their goals, while keeping them ahead of the fast-moving regulatory landscape. Read more on our website.
