"Vantage Capital Group
Vantage Capital Group is a black investment and financial services
group, being 51% owned and controlled by historically disadvantaged
South African individuals and groups (“HDSA”). Vantage’s key focus areas
are third-party private equity fund management (technology, mezzanine
and renewable energy funds), advisory and debt placement services, and
on-balance sheet proprietary investments. The group currently has funds
under management and investments of over R4.5 billion ($450 million).
Vantage Capital was one of the first black-owned and managed private
equity companies in South Africa, and is one of the few remaining
independent black-owned private equity and investment companies which
are not linked to any major financial institution. Vantage Capital was
launched in 2001 (after a merger with MMR Equity Capital) with the
purpose of establishing a Venture Capital Technology Fund with
commitments from the Industrial Development Corporation (IDC), the Dutch
Development Bank (FMO), the Transnet Retirement Fund and the Eskom
Pension and Provident Fund.
Since inception in 2001, the Vantage Technology Fund
has invested R130 million ($13 million) in ten investments ranging from
small start-ups, to larger established listed entities. Six investments,
Mosaic Software, VoxTelecom, ComTech, Aquitec, Grapevine and Spescom
have been successfully exited. Three investments have been written off
and the remaining actively-managed investment, L@w, is cash flow
positive, highly profitable, and has exciting growth plans. The fund is
now in the last phases of divestiture.
In the latter part of 2004, having had nearly four years’ experience in
private equity, and being a majority black-owned and controlled group,
Vantage Capital decided to pursue opportunities that were arising out of
the BEE Charters. To this end, Vantage Capital Investments
was established to source proprietary investment opportunities, which
would not conflict with the existing Technology Fund in terms of
industry sector and size of transaction. To date, Vantage Capital
Investments has participated in three such transactions, namely Incwala,
ComCorp and Kwikspace. Vantage successfully exited its investment in
Incwala in 2010.
In early 2005, with the investment period on the technology fund coming
to an end, Vantage Capital started to explore the possibility of raising
a second fund. With the help of the Dutch Development Bank FMO, it was
decided that the low interest rate environment then prevailing in SA -
which represented a significant departure from the high interest rates
that characterised the eighties and nineties in the country - supported
the establishment of a mezzanine fund. The fund raising process
culminated in the final closing of the Vantage Mezzanine Fund
in November 2007, with commitments of R1,003 million ($100 million).
One-third of the funds were raised from foreign investors and the
balance from local institutions and the Group as a co-investment
commitment. In 2007/2008, the Fund was fully invested in five
transactions in South Africa, namely Safripol, York Timbers, Tsebo,
Primedia and Masivumeni. By December 2013, Vantage had successfully
exited three of these investments.
In March 2012, Vantage Mezzanine closed Mezzanine Fund II,
which has a pan-African investment focus (with a 35% allocation to
opportunities outside South Africa) and can make investments of up to
R300 million ($30 million) in a single transaction. R1.9 billion ($190
million) of commitments were secured from fourteen pension funds, three
charitable endowments, two development finance institutions and a family
office. To date, Vantage has deployed approximately one-half of its
commitments and is well on track to be fully invested by the end of
2014.
Vantage is well-positioned as Africa’s leading mezzanine financier,
capitalising on its strong position in the South African mezzanine
market and building a portfolio of income generating mezzanine assets in
South Africa and in the rest of Africa.
In 2012 Vantage started a Debt Capital Markets
business which focuses on raising public and private debt for mid-size
and large corporates, in the local and international debt capital
markets (including corporate and hybrid bonds). The business also
provides debt advisory services including debt restructurings,
distressed debt advisory, and refinancing.
In 2013, Vantage launched its R2.2 billion ($220 million) GreenX Fund,
which provides investors with exposure to South African renewable
energy projects. This is achieved through the Fund issuing Asset Backed
Notes to its investors and using these proceeds to acquire senior debt
in a diversified portfolio of seven solar and wind projects that
collectively produce 548 MW.
Mutle Mogase, Chris Lister-James and Colin Rezek are the founders of
Vantage Capital. The group is chaired by Mutle Mogase, Technology is
directed by Chris Lister-James, Mezzanine is headed by Colin Rezek and
Luc Albinski, Debt Capital Markets is led by Ashley Benatar and GreenX
is led by Alastair Campbell. They are supported by fourteen investment
professionals and thirteen support and administrative staff.
