Vantage Capital Group is a black investment and financial services group, being 51% owned and controlled by historically disadvantaged South African individuals and groups (“HDSA”). Vantage’s key focus areas are third party private equity fund management (technology and mezzanine funds) and on-balance sheet proprietary investments. The Group currently has funds under management and investments of over R2 billion ($250 million).

Vantage Capital was one of the first black-owned and managed private equity companies in South Africa, and is one of few remaining independent black-owned private equity and investment companies which are not linked to any major financial institution. Vantage Capital was launched in 2001 (after a merger with MMR Equity Capital) with the purpose of establishing a venture capital technology fund, with commitments from the Industrial Development Corporation (IDC), the Transnet Retirement Fund and the Eskom Pension and Provident Fund.

Since its inception in 2001, the Technology Fund has invested R130 million in 10 investments ranging from small start-ups to larger, established listed entities. Five investments, Mosaic Software, VoxTelecom, ComTech, Aquitec and Grapevine have been successfully exited. The remaining actively-managed investments are all cash flow positive and have exciting growth plans. The fund is now closed, although additional funding is available for follow-on investments.

In the latter part of 2004, having had nearly four years’ experience in private equity, and being a majority black-owned and controlled group, Vantage Capital decided to pursue opportunities that were arising out of the BEE Charters. To this end, Vantage Capital Investments was established to source proprietary investment opportunities, which would not conflict with the existing Technology Fund in terms of industry sector and size of transaction. To date, Vantage Capital Investments has participated in three such transactions (Incwala, ComCorp and Kwikspace) and is in the process of considering several more.

In early 2005, with the investment period on the first fund coming to an end, Vantage Capital started to explore the possibility of raising a second fund. With the help of the 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 or risk capital fund. The fund raising process culminated in the final closing of the Vantage Mezzanine Fund in November 2007, with commitments of R1,003 million ($125 million). One-third of the funds were raised from foreign investors and the balance from local institutions and from the group as a co-investment commitment.

With the first mezzanine fund over 97% invested, Vantage is now in the process of raising a second mezzanine fund which will be a substantially larger fund. Vantage will seek to capitalise on its strong position of income generating mezzanine assets locally and in the rest of Africa.

Mutle Mogase, Chris Lister-James and Colin Rezek, the three founders of Vantage Capital, remain the driving force behind the business. Other key members of the team, who all joined since 2006, include Luc Albinski who heads up the mezzanine fund, Ian Heron, the Chairman of the Mezzanine Fund’s Investment Committee, Warren van der Merwe, the Group CFO, Tandi Haslam, Lindi Buthelezi and Johnny F. Jones, the deal executives, as well as Lauren Handler, Deidre Gebhardt, Ronel Cronje and Pumla Ngete, in the financial administration area, and Brenda Wild, the mezzanine corporate affairs co-ordinator.