Makalani Management Company

"About Us

History of Makalani

Makalani Management Company (Pty) Ltd (“Makalani”) was established in 2005 to perform the activities of managing the R2.5 billion mezzanine asset portfolio of Makalani Holdings Ltd (“Fund I”). These activities included deal origination, mezzanine and debt structuring as well as portfolio management. Fund I is fully invested and is in a process of returning funds to its investors. Makalani is in the final stages of raising capital for a second mezzanine fund (“Fund II”) of R1 billion from a range of South African and/or foreign investors.

Mezzanine Finance

Mezzanine Finance is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.

Mezzanine finance is considered a useful financing solution when companies and/or their shareholders want to raise capital and not be subject to the restrictions of more traditional finance or equity solutions. Benefits of mezzanine finance include:

• Avoiding of significant equity dilution which accompanies traditional private equity deal structures;
• Avoiding potentially disruptive shareholder disputes;
• Assisting new BEE participants in obtaining equity ownership in established businesses;
• Providing the funding required for the buy-out of a business currently run by a management team or assisting managers in buying into a new business; and
• Helping managers expand their existing business by providing expansionary capital that can also be used to fund the purchase of businesses which complement the existing operations and provide critical mass...."

http://www.makalani.co.za/