host posted on April 23, 2010 14:00
“Grandview Fund expands its investments and cooperates with Vantage Capital to provide Mezzanine Financing”
AL MAAL NEWSPAPER - CAIRO, 23 MARCH 2010
Eman El Kady
[The article is based on an interview with Marianne Ghali, CEO of Sphinx Fund where she talked about the various sub-funds managed by Sphinx and discussed their cooperation with Vantage Capital ].
Marianne said that “Sphinx is studying cooperation with Vantage Capital, which entered the Egyptian market recently. Vantage was established by a number of investors from South Africa and provides mezzanine funding which Sphinx plans to incorporate into the financing structure of its investee companies via loans from Vantage as opposed to bank loans”.
Marianne also said that “two Grandview investments, Shorouk for Modern Printing and Packaging, as well as ADIS, a petroleum upstream services company, are the top candidates for mezzanine financing from Vantage”.
Marianne went on to explain that “mezzanine financing is best suited to the nature of family-owned businesses, as it allows private equity funds to provide the required financing to investee companies in the form of debt, as opposed to direct equity stakes. This is also highly convenient to companies which don’t have to resort to bank loans, which have fixed maturities in addition to banks’ risk aversion and restrictive conditions given the prevailing level of non-performing loans”.
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