Fund I

Makalani Holdings Limited (“Makalani Holdings”) was incorporated as a public company in South Africa on 12 January 2005 after raising R2.5 billion of capital from institutional and private investors for investment in, and the funding of BEE transactions, as well as other targeted investments.

Makalani Holdings’ investment focus is predominantly in mezzanine funding instruments, but it is also invested in senior loans, convertible instruments and equity.

Makalani Holdings is managed by Makalani Management Company (Pty) Ltd, which is responsible for, inter alia:

  • managing the existing investment portfolio, including broader investment functions, making recommendations on refinance investment opportunities and potential disposals of investments;
  • managing the general administrative activities of Makalani Holdings, including such roles as accounting, tax and legal functions;
  • managing the financial matters of the Makalani Holdings, including managing and monitoring the Company’s gearing and liquidity position;
  • performing regular valuations of Makalani Holdings and its investments for publication; and
  • managing communication with investors.

After careful evaluation, the board concluded that a delisting of Makalani Holdings was the best option for the Company. Accordingly, Makalani provided unitholders with the opportunity to exit the company by selling their units back to the Company for cash, which also included the delisting of Makalani from the JSE on 1 June 2010.

Current Investments

Realised Investments

Brait
As an international group, Brait operates and invests in South Africa, sub-Saharan Africa, Europe and North America. Brait provides a wide range of investment and specialised financial services to a substantial client base that includes listed and unlisted companies, financial and government institutions and high net-worth individuals.
Sector: Financial Services
Original Investments: 2005
Convergence Partners
Convergence Partners is a black economic empowerment company led by Mr Andile Ngcaba. Convergence Partners’ current major investments include interests in Seacom and Dimension Data Middle East Africa.
Sector: IT & Telecommunications
Original Investment: February 2007
Emira
A collective investment scheme, concluded black economic empowerment transactions in 2006 and 2007 whereby a broad-based empowerment grouping acquired approximately 15% of the equity of the Fund.
Sector: Property
Original Investments: 2006 & 2007
Exxaro
Exxaro is the diversified mining resources company that resulted from Kumba Resources Limited’s empowerment transactions. Exxaro has a diverse and world-class commodity portfolio in coal, mineral sands, base metals and industrial minerals, with exposure to iron ore through a 20% interest in listed Kumba Iron Ore Limited.
Sector: Mining
Original Investments: 2006 & 2007

FirstRand
FirstRand is a multi-branded financial services group. Its various companies and divisions are involved in financial services activities, such as retail, corporate, investment and merchant banking, short-term insurance, life insurance, employee benefits, health insurance and asset management. Some of the brands within FirstRand include Rand Merchant Bank (“RMB”), First National Bank (“FNB”) and WesBank.
Sector: Financial Services
Original Investments: May 2005
Fuel
Fuel is a logistics services group whose core businesses are centred on the provision of customised solutions integrating e-commerce and IT with a logistics infrastructure. Fuel is principally engaged in the distribution of a wide range of commercial goods, including clothing, high-value items, pharmaceuticals, spare parts, electronics, etc. In addition, Fuel also provides related warehousing and other logistical services.
Sector: Transport and Logistics
Original Investments: June 2007
Gautrain
Makalani provided mezzanine funding of to the Gautrain Rapid Rail Link Project.
Sector: Infrastructure
Original Investments: 2007
Gold Fields

Gold Fields is one of the world’s largest unhedged producers of gold, providing investors with maximum leverage to the gold price. The company was formed in 1998 with the amalgamation of the gold assets of Gold Fields of South Africa Limited and Gencor Limited.
Sector: Mining
Original Investments: May 2005

Gold Reef City Casino

Gold Reef, which subsequently merged with Tsogo Sun, is a gaming and entertainment company. Its interests include Gold Reef City Casino and Theme De Park, Goldfields Casino and SilverStar Casino.
Sector: Gaming
Original Investments: June 2007

Lereko
Lereko is a BEE investment holding company led by Dr Popo Molefe, Mr Valli Moosa and Dr Lulu Gwagwa. Makalani provided funding to the company to pursuer further BEE and other private equity investments.
Sector: Various
Original Investments: 2008
Life Healthcare
Life Healthcare is one of the largest private hospital operations outside the United States. Life Healthcare’s business is acute hospital care and comprises one of the most geographic spreads of acute care hospitals and same-day-surgical centres in South Africa. Life Healthcare was re-listed on the JSE in August 2010 via an unbundling from Brimstone and Mvelaphanda.
Sector: Healthcare
Original Investments: October 2005
Metropolitan
Metropolitan, which was listed on the JSE before merging with Momentum to form MMI Holdings Limited, provides financial services to the middle to lower income market. The Metropolitan Group comprised four independent operating businesses, each with clearly defined areas of focus, performance and profit objectives: retail, corporate, health and international.
Sector: Financial Services
Original Investments: May 2005
Midas Group
Midas sells branded, guaranteed, quality parts at competitive prices to its nationwide preferred customer base through a national distribution channel. These products are distributed to more than 300 franchisees and other independent spares shops, workshops, fleets, chain stores and engineering shops.
Sector: Automotive
Original Investments: July 2008
Mondi Newsprint
Mondi Newsprint is a leading supplier of newsprint and telephone directory paper in South Africa and selected export markets. Mondi Newsprint was formed in 2004 following Shanduka Resources’ acquisition of an interest in Mondi South Africa Limited’s integrated South African newsprint business.
Sector: Paper & Packaging
Original Investments: 2005
Mvelaphanda Group
Mvelaphanda Group, listed on the JSE, is a 53% black-owned and managed diversified company, which has interests in a range of companies in the financial services, property, healthcare and general industrial sectors.
Sector: Financial Services
Original Investments: November 2005
Nafhold

Sector: Financial Services
Original Investments: November 2008
Nampak
Nampak, listed on the JSE, is Africa’s largest, most diversified packaging manufacturer, and has operations in several countries in Europe.
Sector: Paper & Packaging
Original Investments: 2005
Prostart
Izingwe Holdings (Pty) Ltd, a company founded by among others, Sipho Pityana, acquired a stake in Prostart, a subsidiary of Free World Coatings (Proprietary) Limited.

Original Investments: 2007
Sandown Motors
Sandown Motors owns and operates motor dealerships, selling passenger and commercial vehicles under the DaimlerChrysler brands in Gauteng and Western Cape. In 2006, MBSA and the founding shareholder, Roy McAllister, sold a 40% equity stake in Sandown Motors to a broadbased BEE consortium.
Sector: Automotive
Original Investments: 2006
Servest
Servest is an integrated support services group, which provides support services in South Africa.
Sector: Services
Original Investments: April 2008
Shanduka Group
The Shanduka Group is a leading African black owned and managed investment holding company established in November 2000. The Shanduka investment portfolio comprises Resources, Financial Services, Property, Energy, Beverages and Industrial & General.
Sector: Various
Original Investments: March 2006
Tongaat
Tongaat is an agri-processing business which includes integrated components of land management, property development and agriculture.
Sector: Food & Agriculture
Original Investments: 2007
Tourvest
The Tourism Investment Corporation Limited (“Tourvest”). Tourvest was incorporated in South Africa in 1996 and owns travel, financial services and tourism merchandising (retail) businesses and owns strategic tourism products.
Sector: Tourism
Original Investments: 2008
WDB Group
Three organizations comprising the WDB Group – the WDB Trust, WDB Micro Finance and WDB Investment Holdings – are interdependent and integrated in working towards promoting the economic empowerment and social upliftment of women in South Africa. Sector: Financial Services Original Investments: 2008