BUSINESS UNITS - RISK CAPITAL
 
Risk Capital
Investment Criteria
Mezzanine Fund Portfolio
VANTAGE RISK CAPITAL (“Mezzanine Fund”)

Vantage Risk Capital is the largest independent provider of mezzanine risk capital to medium-sized South African businesses seeking to either expand their operations or change the structure of their ownership. Vantage Risk Capital is a subsidiary of Vantage Capital Group, an independent, majority black-owned and managed business. The executive directors, led by Mutle Mogase, own most of the equity in Vantage Capital Group with the balance owned by broad-based black women and youth trusts. As a result, Vantage Risk Capital is not aligned to any single bank or fund manager. Vantage Risk Capital’s independence allows it to structure the best possible financial solutions for its corporate clients spanning a broad range of debt and equity instruments.

In structuring its deals, Vantage Risk Capital can be more flexible than many other capital providers in the South African marketplace. Unlike traditional bank lending, it is not focused primarily on the assets and on the available security underpinning a transaction. An in-depth understanding of cash flows drives its decision-making. This allows it to provide significantly more debt to a given transaction than traditional bank lending criteria would allow.

Unlike most funds that have a strong equity focus, Vantage Risk Capital seeks to earn most of its return through debt instruments. This makes Vantage Risk Capital a friendly place for management teams seeking to minimize the equity dilution associated with their capital raising activities. Similarly, its debt focus makes it a friendly place for black empowerment consortiums seeking to:

 
  • Maximize their share of the equity in a given transaction; and
  • Shorten the time it takes for them to enjoy the full economic benefits of their assets.

Most importantly, Vantage Risk Capital is able to invest significant capital in individual transactions being backed by leading South African pension fund and asset managers as well as highly-reputed foreign development finance institutions.

These investors and the Vantage Capital Group have collectively provided the Fund managed by Vantage with total capital commitments of R1,003 million ($125 million), according Vantage Risk Capital the ability to invest up to R350 million ($44 million) in any one transaction.

Copyright Vantage Capital.
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Vantage Mezzanine (Pty) Ltd & Vantage Capital Fund Managers (Pty) Ltd are Authorised Financial Service Providers.
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