Kholo Capital steps in when equity funding is required, plugging the equity funding gap with mezzanine debt so shareholders don’t give up equity and don’t suffer equity dilution.

The R1,4bn Kholo Capital Mezzanine Debt Fund provides mezzanine debt R70m to R205m to medium sized businesses (minimum R25m EBITDA p.a.) in all sectors (excl. primary mining & primary agriculture). We do invest in mining services/products, mining logistics/transportation, mineral processing and Agri processing.

We provide growth capital & acquisition funding to companies in SA, CMA and Botswana. Investment tenor 4 to 7yrs and returns above 17% (interest rate and equity upside). Leverage up to 4x Total Debt to EBITDA or up to 80% LTV. We require minimum 20% equity cushion behind the mezzanine debt.

We fund management buyouts, private equity buyouts & shareholder liquidity events so shareholders take money out (fund share buy-backs, refinance shareholder loans, redeem preference shares and dividend recaps).