Lion of Africa Fund Managers

http://www.lionfunds.co.za/aboutus.htm

"

Lion of Africa Fund Managers boasts a credible investment team with a wealth of industry experience. Our team members have lived through numerous market cycles and conditions over the years.

The team constitutes a group of passionate professionals with a diverse set of skills, views and insights, blending the burning desire of youth with the quiet, considered expertise and patience that comes with time.

Collectively our backgrounds cover experience in investment management, mathematics, actuarial science, economics, accounting, marketing, information systems, corporate finance, entrepreneurship, social dynamics and corporate governance.

The team is headed by individuals who have developed and managed a number of successful businesses, which are thriving in the financial services industry today..."

Amethis Finance

http://www.amethisfinance.com/news/amethis-finance-successfully-mobilizes-usd-530-million-for-african-entrepreneurs/

"Amethis Finance successfully mobilizes USD 530 million for African Entrepreneurs

Amethis Finance, the private investment fund dedicated to long-term responsible investments in Africa, founded in partnership between Luc Rigouzzo, Laurent Demey, and the Edmond de Rothschild Group through Compagnie Benjamin de Rothschild Conseil “CBR”, successfully reached its final close in June 2014, mobilizing USD 530 million. Amethis has been able to attract an unprecedented number of private investors for an African fund, being financial institutions but also European and US family offices.

A unique community of long-term entrepreneurs and private investors for Africa

Amethis realizes one of the biggest fundraising ever for a first-time investment fund dedicated to Africa showing increasing interest of US and European investors for the continent. Amethis’ unique shareholding structure is composed of 55 investors of which only 3 are state owned while most of the investment funds dedicated to Africa have been financed by development finance institutions (DFI) so far. Amethis has managed to bring to Africa European, US and African institutions, together with close to 40 European and US entrepreneurs and family offices.

The capacity to build a bridge between European and US private investors and successful African Entrepreneurs

Amethis has a unique shareholding structure: mixing classical institutional investors (banks, insurance companies, fund of fund…) with successful private entrepreneurs from the manufacturing and services sectors who are investing often for the first time in Africa and are looking to know better the continent. Amethis considers its investors as potential shareholders and business partners for the companies it invests in. Amethis assists its investors in their expansion, notably through co-investments. Indeed, Amethis aims to capitalize on its network to identify and to harness strategies between its diversified investor pool and its local partners.

A business model suited for the continent’s needs and differentiated from same-sized traditional funds investing in the continent

Africa is going through a rapid and dramatic change, thanks to its demographics and fast urbanization. Economic models are rapidly changing, with consumer and retail oriented companies taking advantage of those evolutions. This rapid growth is creating significant capital needs for local companies, and Amethis’ strategy is to foster long-term ties with well-established, high-growth African businesses which need long-term capital, and supporting them through a new phase of their life cycle. Amethis is helping them to develop, first in their own national space, then in their regional space

To do so, Amethis has developed an investment strategy adapted to the African needs and specificities:
- Amethis is particularly positioned on Africa’s bottlenecks areas supporting urbanization and consumer growth: financial services, retail, agri-business, energy…
- Amethis is focused on countries with a large domestic market and a diversified economy (i.e. countries in transition).
- Amethis is one of the only player to provide its clients with traditional equity and flexible long-term debt, a mix adapted to its clients’ needs.
- Amethis only takes minority stakes, which is well suited for family-owned businesses.
- Finally, Amethis is characterized by its long-term horizon.

A quick start with already five investments completed so far

A year and a half after its first closing, Amethis has already made 5 investments, in fast perfoming companies in Kenya, Ghana, Cote d’Ivoire and Mauritius, in banking, oil and gas retail distribution and logistics. Amethis is supporting the rapid changes in the African retail banking industry, pushed by innovative local banks creating new marketing and distribution models. It has already partnered with the two fastest growing banks in Kenya and Ghana, respectively Chase Bank and Fidelity Bank, who are transforming their respective banking industries. It is supporting in Côte d’Ivoire the quick rise in gas consumption, investing in the local champion, Pétroivoire. In the Indian Ocean, it backs the rise of Mauritius as the regional logistics hub through the regional leader, Velogic.

A fruitful partnership with Compagnie Benjamin de Rothschild Conseil

The fruitful alliance with CBR is grounded on the proven know-how of Amethis Finance founders in sustainable development in Africa and the credibility of the Edmond the Rothschild Group. Amethis founders are a team of bankers and Private Equity investors, specialized in Africa and the Mediterranean, who have devoted their careers to private equity and long-term lending on the African continent. They share the same long-term investment vision as the Rothschild family which have granted to CBR a mission to promote innovative investment schemes in partnerships with highly recognized investment professionals. Over the last ten years CBR has developed a recognized environmental and social expertise, notably with its investment funds platform, covering traditional strategies and focusing on Impact Finance, Environment and Infrastructure, in developed markets and frontier markets.

Luc Rigouzzo, Managing Partner at Amethis comments: “The success of this fundraising, demonstrates the appetite of private European and US entrepreneurs and family offices to invest in Africa, the next world frontier for growth, and their conviction that our patient and responsible business model is well adapted to the needs of the continent.”

Laurent Demey, Managing Partner at Amethis, adds “African entrepreneurs are shaping Africa’s future at a key moment in the continent history. Amethis role and objective is to support them in all possible ways: money, of course, but also value addition, international network and recognition through our very specific business model and shareholder base.”

Johnny El Hachem, Chief Executive Officer of Compagnie Benjamin de Rothschild Conseil adds: “We were convinced that Amethis was the right team for this partnership, with whom we share the same vision of long-term responsible investment in Africa. It is at the core of the Edmond de Rothschild Group to partner with talented professionals on ambitious and innovative projects.
_ _ _
For further information, please contact:
❖ Amethis Finance
Luc Rigouzzo (luc.rigouzzo@amethisfinance.com)
Laurent Demey (Laurent.demey@amethisfinance.com)
❖ Compagnie Benjamin de Rothschild Conseil (Edmond de Rothschild Group)
Johnny El Hachem (jelhachem@ctbr.ch)
About Amethis Finance
Amethis Finance is a financial institution dedicated to Sub-Saharan Africa, initiated in December 2012 by Luc Rigouzzo and Laurent Demey, respectively former CEO an Deputy CEO of Proparco, subsidiary of the French Development Agency, in partnership with the Compagnie Benjamin de Rothschild.

Amethis Finance is a “one stop shop” which provides all long-term financial instruments (long-term debt, equity and quasi equity investment), with high standards and objectives in terms of development, social and governance criteria.

Amethis positions itself as a long term investors with the aim of supporting private companies in the consolidation of their competitive positioning, domestic and regional expansion as well as implementation of long term strategic plan. After an intermediary close at 185MUSD, Amethis has closed its fund raising at 530MUSD.

About the Edmond de Rothschild Group
Founded in 1953 by Baron Edmond de Rothschild and presided over since 1997 by Baron Benjamin de Rothschild, the Edmond de Rothschild Group specialises in Asset Management and Private Banking. At 31 December 2013 the Group had €133.6 billion of assets under management and nearly 2800 employees spread across 31 offices, branches and subsidiaries throughout the world. In addition to its core businesses of Asset Management and Private Banking, the Group is also active in Corporate Finance, Private Equity and Fund Administration.

Compagnie Benjamin de Rothschild Conseil is a subsidiary dedicated to innovative project funds and sustainable finance through private equity...."

Chrysalis Capital

"Chrysalis Capital was founded in July 2008 as a niche Investment house that operates in the private sector credit market. We believe this market presents significant opportunities for liquidity providers outside of the banking environment. The Chrysalis team are ex-bankers who use their banking experience and relationships to find and exploit pockets of inefficiency in the banking system. Our competitive advantage is speed, the ability to source opportunities via key relationships, and an entrepreneurial approach. We have the ability to provide senior or mezzanine finance in various sectors. Whereas we have an open-minded approach to risk, our preference is to fund companies that will thrive or be resilient in the prevailing economic environment.

Chrysalis uses its experience base in debt and deal structuring to pass the disproportionate returns available in a structurally inefficient banking system onto its investors, whilst at the same time playing an important role as liquidity provider in the economy. The business and investment case is compelling in an environment where credit has dried up and demand for liquidity is high.

Our objectives, in respect of our investors, are to generate stable and positive returns in excess of what cash offers, and to ensure that the correlation of our returns to equity and bond markets remain negligible...."

http://www.chrysaliscapital.org/index.htm 

Hibridge Capital

"

• Hibridge is a unique, owner managed investment management and services business with a track record of delivering:
  • positive non correlated returns;
  • robust, independent advice; and
  • tax efficient and proficient establishment and management of offshore structures.
• Proprietary "off market" investment opportunities, not available through traditional investment houses, are sourced through a broad network of relationships. We are not constrained in our investment approach by size, geography or asset class
• Since 2003, Hibridge has invested over £55 million in private equity, property and secured debt investments (predominantly in Africa) for its clients and has been involved in corporate advisory transactions valued at in excess of £100 million
• The majority of our remuneration is received in performance equity rather than in fees. In addition, the founders invest their own capital in funds promoted by Hibridge Capital. As such, our interests are fully aligned with our clients

PRIVATE EQUITY

OVERVIEW

• Rather than being burdened by excess capital we prefer to raise funds for specific investment opportunities. In this respect, our philosophy is that if we serve our investors well they will support us in new ventures
• Our investors include large financial institutions and high net worth individuals
• The majority of our investments are proprietary, sourced through an existing network of personal contacts which has been developed over many years of investment banking and advisory business
• We take an eclectic approach to private equity - our skills are developed to adapt to an ever changing environment. As such, we are not focused on any single sector
• We are active in the development of our portfolio investments. We not only bring traditional skills like corporate finance and structuring to our portfolio companies but we also facilitate growth by introducing the management teams we back to our global network of contacts
• We invest in control positions with the following characteristics:
  • excellent management that are willing to make a meaningful investment in the business;
  • proprietary opportunities, we will generally not participate in a competitive sale process;
  • existence of a clearly understood and creative business plan that reflects highly visible profitability and growth; and
  • an identifiable exit strategy at the time of investment.
• We are happy to co-invest with other financial investors and work with them in a complementary way. However, we require representation on the Board and negative control.

SECURED DEBT

OVERVIEW

• Hibridge Capital sources, structures and arranges funds for secondary debt finance opportunities predominantly in Africa through MCapital its subsidiary operating in South Africa - see presentation.
• We have delivered investors double digit returns with a low correlation to any asset class since 2003 and throughout the economic difficulties since 2007
• All debt investments are asset and/or cash flow backed and secured by a charge over property and personal surety
• Average investment size is approximately £1 million and the average term is eighteen months
• We are acknowledged as having a robust credit culture and work with highly reputable law firms to implement transactions and execute security
• Investment opportunities are sourced through a number of partnerships with debt originators, professional firms and banks. To them we are a long-term creative partner able to structure debt that best matches the various needs of preserving equity, improving cash flow and reducing costs

WHY BORROWERS PAY "MEZZANINE" RATES

• Primary lenders typically lend between 50% and 80% of capital requirement
• The remaining capital must be financed by equity and/or mezzanine debt
• Borrowers generally use mezzanine debt funding for the following reasons:
• equity funding is scarce and more expensive in the long term;
• mezzanine debt increases returns to the borrower;
• mezzanine increases a borrower's capacity to invest in other projects and therefore facilitates a spreading of risk;
• a mezzanine partner provides the borrower with greater flexibility compared to an equity partner

CRITERIA FOR MAKING LOANS

• Borrower
• must be experienced with a demonstrable track record
• verifiable financial statements of project and borrower
• clean credit history
• must contribute equity
• defined exit strategy
• personal guarantee provided by borrower
• Financials/security
• no greater than 75% loan to value exposure
• return on project costs in excess of 35%
• charge over assets and pledge of shares
• personal surety
• restrictive undertakings
• borrower subordination
• Board representation
• Term of loan
• initial fees to cover legal, due diligence and closing costs
• average term 18 months
• generally no prepayment penalty
• interest rolled up

INVESTMENT PROCESS

Hibridge Capital has a structured and disciplined approach to managing exposures and achieving enhanced returns

SELECTED INVESTMENTS

Hibridge Capital has invested in a wide variety of transactions in the UK and South Africa exceeding £20 million.
We are recognised as one of the leading independent mezzanine finance operators in South Africa.
Our strategy is to only invest in high quality opportunities. In this respect, we fund less than 3% of the potential transactions made available to Hibridge Capital per annum...."

 http://www.hbcap.com/index.php

Mezzanine Partners

"Mezzanine Partners (Pty) Ltd (“Mezzanine Partners”) is South Africa’s leading independent source of mezzanine capital. We manage closed-end mezzanine debt funds dedicated to providing equity sponsors and management teams in southern Africa with tailor-made term financing solutions that meet their intermediate capital funding requirements.

Typically our mezzanine investments fall into the following transaction categories: leveraged or management buyouts, recapitalizations, middle- to late-stage expansion or growth investments, acquisition finance, black economic empowerment transaction financings and special situations.

Mezzanine Partners analyses the investment merits of each potential investment opportunity whilst simultaneously carrying-on a process of consultation with all the relevant stakeholders to ensure that the financial instrument used is suitably tailored to meet the specific requirements of the relevant transaction.

In identifying suitable investment opportunities, Mezzanine Partners looks for investees that exhibit a preponderance of the following features:

• Are market-leaders in their chosen areas of operation, and from a size perspective typically mid- or large cap companies;
• Have a track-record of stable, non-cyclical financial performance, incorporating the following elements:
  
  
• Strong earnings and revenue growth;
• Sustainable margins;
• Unique or proprietary products, services or processes which provide the business with a sustainable competitive advantage in clearly defined market segments;
• Generate sustainable and sufficient free cash flow after working and fixed capital expenditures;
• Boast experienced and superior management teams;
• Are backed by committed and experienced equity sponsors;
• Have a management team with a significant equity interest in the business.

Mezzanine Partners’ commitment to managing a diversified investment portfolio means that the investment opportunities which it targets could operate across a broad spectrum of industries.

Mezzanine Partners will typically not invest in:

• Turnaround situations;
• Start-up or early stage investment opportunities;
• Real estate transactions;
• Opportunities considered too small within the context of the strategic objectives of the funds under Mezzanine Partners’ management.

http://www.mezzpartners.com/index.html

Jacana Partners

"Jacana Partners’ East and West Africa funds are
managed by teams based out of Nairobi and Accra.

To find out more, please contact:

West Africa

Chris Biney
cobiney@mustardgh.com
cobiney@fcplgh.com
www.mustardgh.com

East Africa

Steven Otto
sotto@jacanapartners.com
steven.otto@inreturncapital.com
+254 715 599 660
+31 6 51 833 976

Jordan Filko
jfilko@jacanapartners.com
jordan.filko@inreturncapital.com
+254 725 705 773"

 http://www.jacanapartners.com/

Greylock Africa Opportunity Fund

Greylock Africa Opportunity Fund

Up to $200m
Pan-Africa

• Corporate
• Mezzanine
• Convertible and sovereign debt
• As well as private equity investments in various industries including
• Telecommunications
• Finance and banking
• Agribusiness
• Tourism
• Real estate
• Natural resources
• Energy

http://greylockcapital.com/

46 Parallels

About

46 Parallels is a pan-African investment partnership with a specific focus on Sub-Saharan Africa (SSA) excluding South Africa. The team is based in London, Lagos and Nairobi.

We specialise in investing capital into SSA in a sustainable and responsible manner through equity-linked debt, targeting companies with robust business plans, strong asset backing, solid growth prospects and consistent cashflows. We believe that this approach allows investors to capitalise on the African Opportunity, without exposure to the traditional constraints of illiquid public or private equity funds.

The name ‘46 Parallels’ defines the area between two key lines of latitude: the Tropics of Cancer and Capricorn, north and south of the Equator. The Fund’s focus will be on SSA countries lying between these two latitudes, where we believe market opportunities are at their most promising.

46 Parallels is an investment management partnership, launched in Q2 2011. It is a joint venture between TIA Capital Management LLP (TIA) and the JMH Group, and was formed to build, structure and launch an African investment fund, realising a strategy developed by TIA since 2009.

Our primary focus is to launch a closed-ended fund strategy specialising in Sub-Saharan African debt investments. The partnership is targeting a first close of the Fund at $100 million.

Since its launch, 46 Parallels has been financially backed by the JMH Group, an international conglomerate whose businesses include Fosroc, the fourth largest construction solutions business in the world, and whose core earnings mainly originate from emerging markets. Other businesses include JMH Capital Management, the investment office of the JMH Group. The Group’s involvement in 46 Parallels is a continuation of its long history of investment into global emerging markets.

Thus far, the business has offices in London, Lagos and Nairobi. Local access and a strong presence on the ground in Africa are key to the firm’s investment strategy and activities.

46 Parallels conducts regulated investment business in the UK through 46 Parallels Limited, which is authorised and regulated by the Financial Conduct Authority (registered number 554385)...."

http://www.46parallels.com/ 

Helios Investment Partners

"Welcome to Helios Investment Partners

Helios Investment Partners is an Africa-focused private investment firm. Helios operates a family of funds and their related co-investment entities, aggregating more than $2.7 billion in capital commitments, pursuing a full range of investment types, including business formations, growth equity investments, structured investments in listed entities and large scale leveraged acquisitions across Africa. The firm also managed the $110 million Modern Africa Fund on behalf of a range of investors which included the U.S. government's Overseas Private Investment Corporation and several leading U.S. corporations.

Established in 2004 and led by co-founding partners Tope Lawani and Babatunde Soyoye, Helios is one of the largest investment firms focusing on Africa and is among the few independent pan-African private equity investment firms to be founded and managed by Africans. The investment experience of the members of our team has been gained from decades of collective experience in private equity, in some of the world's most competitive and demanding markets, within such leading firms as TPG Capital, Bain Capital, Warburg Pincus, HgCapital, The Carlyle Group, among others.

Our team has significant experience in private equity investing across a broad range of industries and investment types - leveraged buyouts, recapitalizations, joint ventures, seed-stage venture capital, restructurings, and strategic public equity investments. Equally importantly, members of our team possess significant operational expertise derived from our collective involvement in the conceptualisation, creation and development of several new businesses in various markets and from having played critical operating roles in corporate turnaround situations.

We believe that Helios' combination of deep knowledge of the African market, extensive investment experience, the capability to add value to portfolio company operations, and strong network of reliable and trusted local and industrial financial contacts positions it well to identify and execute on attractive investment opportunities in the region.

The principals of Helios believe that the firm is well positioned to serve as a 'bridge' between Africa, on the one hand, and Europe and North America, on the other and that our approach will yield opportunities to generate attractive risk-adjusted returns in the complex but relatively inefficient and uncompetitive region while, at the same time, contributing to the socio-economic development of the continent.

Limited partners in Helios' funds include leading endowments and foundations, global funds-of-funds, sovereign wealth funds, family offices, high net worth individuals, and development finance institutions. Certain of Helios' funds are advised by its London-based investment adviser, Helios Investment Partners LLP, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority.

Helios' strategy is to acquire and / or build market-leading, diversified platform companies operating in the core economic sectors of key countries, with an emphasis on portfolio operations as a creator of value.

The key tenets of the Firm's approach are:

• Constructing a concentrated portfolio of platform investments, each requiring $30 to $200 million of equity, in companies of scale or that are clearly scalable;
• Maintaining discipline on price / valuation, governance and control;
• Remaining flexible and creative with respect to transaction structure; and
• Driving performance by leveraging a dedicated Portfolio Operation Group and a network of external Domain Experts...."

http://www.heliosinvestment.com/

FMO

About us

FMO is the Dutch development bank. We support sustainable private sector growth in developing and emerging markets by investing in ambitious companies. We believe a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life.

Finance & Loans

We offer clients several financing and services products – from loans and credits to mixed packages, often in local currencies.

From traditional to tailored

FMO finances commercially viable companies and projects through a variety of finance products and services – designing our funding packages to match each client’s situation, needs and interests.

Private Equity

Equity can be crucial for a business’s growth and expansion – but is often unaccessible to companies in developing countries. As an equity investment partner, FMO brings more to the table than financing alone.

Committed to the future

Growing businesses need knowledgeable investors that not only provide necessary funding, but also share a long-term vision. FMO provides equity with a goal that reaches beyond the businesses to the benefit of their economies and society at large. And because we provide such scarce, high-risk finance, FMO looks for clients that also share a vision of long-term impact.

Successful investment approach

We build on our successful strategy of investing in private equity funds and making co-investments alongside these funds. We seek leadership in our focus sectors Financial Institutions and Energy. Our focus and network in these sectors translates into a substantial deal flow of visible and often innovative deals.

Through a top-down market approach we identify and pursue strategic deals with the most promising players in a sector. From the very start, FMO focuses on a clear exit strategy as part of negotiations and structure – usually taking a minority interest in a project’s equity to pave the way for more autonomous investment paths.

An anchor investor

In our fund investing activities, we cement our leadership by supporting not only fund managers with a positive track record, but also first time fund managers as anchor investor in frontier market funds or funds in FMO's focus sectors. These fund managers can benefit from FMO's substantial network and our knowledge of best practices in emerging markets private equity.

In addition to conducting a thorough business and financial due diligence, we also look for clients willing to make solid social, economic and governance conditions part of their business model, if these are not already in place.

FMO can answer private equity needs through:

• Investment in private equity or mezzanine funds
• Co-investments with our investee funds
• Direct equity investments in financial institutions or energy companies or projects
• Mezzanine transactions combining elements of equity and debt

A catalyst

Our participation often acts as a catalyst – attracting interest from other suitable investors who would otherwise avoid what are still considered higher-risk projects.

By supporting first time fund managers as an anchor investor, we pave the way for other investors to join later on. In our direct investments, our contribution to the investee companies' capital base allows these companies to access debt finance from local or international banks...."

 https://www.fmo.nl/home

CDC Group

CDC supports the building of businesses throughout Africa and South Asia to create jobs and make a lasting difference to people’s lives in some of the world’s poorest places.
We aim to invest where our job creation focus can have greatest impact: in countries where the private sector is weak and jobs are scarce, and in sectors where growth leads to jobs – directly and indirectly – such as manufacturing, agribusiness, infrastructure, financial institutions, construction, health and education.
CDC invests to support the growth of all sizes of business from the micro-level right up to the largest because we believe that a balanced private sector is necessary for economic development and robust job creation.
In addition to creating jobs, CDC intends to demonstrate that it is possible to invest successfully in challenging environments, thereby attracting other sources of capital including fully commercial capital in time.
- See more at: http://www.cdcgroup.com/What-we-do/Our-Mission/#sthash.YaiPRoOJ.dpuf

"CDC is the UK's Development Finance Institution (DFI) wholly owned by the UK Government's Department for International Development (DFID). It is the world's oldest DFI with a history of making successful investments for businesses which have become industry leaders thereby having enormous impact on the private sector in their country and region as well as improving the lives of many, many individuals.

CDC's mission is to support the building of businesses throughout Africa and South Asia, to create jobs and make a lasting difference to people's lives in some of the world's poorest places...."

http://www.cdcgroup.com/

Africa Finance Corporation (AFC)

"AFC’s mission is to help address Africa’s infrastructure development needs while seeking a competitive return on capital for its shareholders. Since it began operations in 2007, AFC has created the building blocks with which to achieve this objective.

Our Vision: To be the leading African institution in infrastructure financing on the continent

Our Mission: To foster economic growth and industrial development of African countries, while delivering a competitive return on investment to our shareholders

 

 http://www.africafc.org/

Ke Nako Capital

"Ke Nako Capital (Pty) Ltd (Ke Nako) is a limited liability company incorporated in the Republic of South Africa and registered by the South African Financial Services Board.

Ke Nako is an independent investment manager for the Ke Nako Private Equity Funds, specialising in South African private equity and mezzanine debt, with a well established track record of private equity investing.

Ke Nako Private Equity Fund I was the first independent private equity fund-of-funds in South Africa and is a leading fund of its kind with ZAR 1.35 billion (USD 170 million) of assets under management . Ke Nako is currently raising Ke Nako Private Equity Fund II with a target size of ZAR 1.5 billion. Ke Nako is a member of the South African Venture Capital Association (SAVCA) and regularly contributes to the training and further education of South African institutional investors and the development of the asset class..."

 http://www.kenakocapital.co.za/

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/

Old Mutual Specialised Finance ("OMSFIN")

"Specialised Finance

Old Mutual Specialised Finance (OMSFIN) is a proprietary investment business and an alternatives investment manager. Through its capital market activities, OMSFIN delivers above-average, risk-adjusted returns for a predetermined level of risk to shareholders. 

OMSFIN’s two primary business areas include:

Trading and Structuring: This business is responsible for funding OMSFIN’s proprietary balance sheet activities. The team risk-manages OMSFIN’s portfolio using advanced hedging and portfolio structuring techniques, while taking advantage of any identified market anomalies. The Trading and Structuring team is also responsible for managing Old Mutual (South Africa)’s shareholder guarantees. They use interest rate and equity derivative products to hedge market risk and have been instrumental in reducing interest rate volatility while, at the same time, improving the performance and capital efficiency of the funds. Read more...

Asset Origination: This business participates in the South African capital markets – originating and managing assets for both Old Mutual (South Africa) and OMSFIN. The business operates across the structured finance continuum, offering financing in areas of structured debt, leverage, property, project and mezzanine finance. Read more ...

 http://www.oldmutual.co.za/corporate/asset-management/om-investment-group-%28sa%29/boutiques-and-units/specialised-finance.aspx

Sanlam Private Equity

"Sanlam Private Equity (SPE)

Established in 1996, Sanlam Private Equity is one of the largest private equity firms in South Africa with over R4 billion invested capital.

Since our inception we have made well over 100 investment in buyouts, growth capital, private equity and venture capital funds, infrastructure projects and investment companies.

What drives us

Creating value for our stakeholders.

What defines us

Our market reach, intellectual capital, experience in adapting to market cycles, our diverse finance products, creativity and patience.

Our Business

The Sanlam Private Equity business was established in 1996. Sanlam Private Equity is a division of Sanlam Investment Management and its ultimate parent company is Sanlam Limited.

With over 50 investments across various sectors of the economy our conservative investment style, creativity and patience bodes well for the delivery of superior investors returns

• Buyouts, growth and expansion capital
• Mezzanine Finance
• Fund of Funds...

http://www.sanlam.co.za/wps/wcm/connect/Sanlam_Investments_EN/sanlaminvestments/our+businesses/sanlam+private+equity+%28spe%29/default+content

Vantage Capital

"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.

http://www.vantagecapital.co.za/