Makalani is in the process of raising investment capital for a second mezzanine fund (Fund II) which is a follow-on vehicle to Mezzanine Fund I (Makalani Holdings Limited). Fund II held its first close receiving commitments from some of the largest institutional investors in Southern Africa.
Fund II is expected to follow a similar investment strategy to its predecessor fund, and will consider investments with the following criteria:
Participation in refinancing opportunities in existing Black Economic Empowerment (BEE) and mezzanine structures, especially in circumstances where traditional lenders such as banks may find themselves constrained in providing mezzanine finance due to regulatory constraints
Funding existing BEE participants
Provide funding to existing BEE participants which demonstrate significant net asset value but lack funding to take advantage of further opportunities available to them. This funding could also be used to facilitate the exit of the traditional non-BEE investors who provided initial development finance to BEE participants.
Facilitate consolidation opportunities by providing BEE players with access to finance, which will enable them to acquire BEE assets from other existing BEE participants in existing structures.
Primary BEE and Mezzanine Opportunities
Provide funding in traditional primary BEE and mezzanine opportunities
Enterprise Growth and Expansion
Provide mezzanine funding for enterprise growth and expansion.