Vantage Capital Fund Management
Vantage Capital Fund Managers (“VCFM”) has funds under management and investments of over R8.0 billion (over $500 million). VCFM was launched in 2001 with the Vantage Technology Fund which has invested R130 million ($19 million) in ten investments ranging from small start-ups, to larger established listed entities. The fund is now in the last phases of divestiture.
In early 2005, with the investment period on the technology fund coming to an end, VCFM 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 ($150 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 Masevumeni. By March 2015, Vantage had successfully exited four of these investments.
In March 2012, Vantage Mezzanine closed Mezzanine Fund II, which had a pan-African investment focus (with a 35% allocation to opportunities outside South Africa) and could make investments of up to R300 million ($30 million) in a single transaction. R1.9 billion ($240 million) of commitments were secured from fourteen pension funds, three charitable endowments, two development finance institutions and a family office. By August 2015, the Fund was fully invested in nine transactions in South Africa (TrenStar, Efekto, Kgoro, Timrite, Pretoria Towers, Austell, Dynamic Bedding, Afrisam and Servest) and four transactions outside of South Africa (CA Sales in Botswana; Genser and Surfline in Ghana; and Simba Properties in Uganda). By end-2015, Vantage had successfully exited three of these investments.
With recent closings on the Vantage Mezzanine Fund III in November 2015, Vantage Mezzanine has so far received signed commitments of circa R3.7 billion (US$240 million) and is targeted to have a final close totalling 4.0 billion ($250 – 270 million) by the first half of 2016 for investment into selected countries throughout the African region (60% outside of South Africa). 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 2013, Vantage launched its R2.2bn ($220m) 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 eight solar and wind projects that collectively as a portfolio will produce 666 MW.
Vantage Capital, Africa’s largest mezzanine fund manager, announced today that it has provided a debenture facility of N$80 million (R80 million) to United Africa Group (“UAG”), an established hospitality and property-owning group in Namibia.Read more
Vantage Capital, Africa’s largest mezzanine fund manager, announced today that it has provided $20 million (R294 million) of funding to Landmark Africa, one of Nigeria’s leading property developers.Read more
Protea Hotels announced the signing of contracts for the development of new hotel properties in Uganda [The Protea Hotel Naguru Skyz and the Protea Hotel Pinnacle].The deal was agreed between Protea Hotels, a member of Marriott International, and its local partner in the country [Simba Properties].Read more
Vantage Capital has fully exited its investment in Trenstar, a South African returnable packaging company, in a deal with private equity fund Kleoss Capital, Leaf Capital and Trenstar’s management team.Read more