About Us

Masters in Growth

Kholo Capital is a majority black owned and managed fund management business.

Founded by former Partners of Vantage Capital, Mokgome Mogoba and Zaheer Cassim. They both remain non-executive shareholders of Vantage Capital.

The management team has more than 60 years of collective credit and investment experience and is highly skilled in senior debt, mezzanine debt and private equity.

The team has a strong track record in the credit and investment space and has invested in excess of R57bn of capital deployed in over 110 transactions in more than 12 African countries.

Kholo Capital is managed by a cohesive, dynamic and nimble team that has worked together over the last 15 years.

Mezzanine Debt SA Fund

  • Investment size of between R50m to R225m and tenor 4 – 7 years.
  • Regular cash distributions in the form of interest payments, and self liquidating equity upside on maturity providing a definitive exit.
  • Contractual returns with equity upside and enforceable downside protection which includes security package, financial covenants and equity cushion.
  • Comprehensive due diligence, security package, financial covenants, active monitoring and governance through board observers ensuring downside protection.
  • Exits achieved mainly through senior debt refinancing after EBITDA growth and de-gearing of investee company.

Executive Summary

Kholo Capital Credit Co-Investment Fund (“Kholo Capital” or “the Fund”) offers investors the opportunity to invest in a diversified portfolio of debt instruments, predominantly in the form of bank loans to South African corporates. This provides investors with access to bank debt transactions that they would normally not be able to access.

Kholo Capital invests in loans made by the major banks to companies in South Africa where Kholo Capital’s exposure is less than 40% of the total loan. Thus the originating bank will always have a significant exposure in the underlying loan.

Fund Strategy &
Types of Investments

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Investor Benefits

The investor gets the benefit of all loans being originated and diligenced by the bank and passed through the bank’s credit process as well as these loans being diligenced and processed through Kholo Capital’s credit process.

The Kholo Capital team has deep networks and relationships across the African continent which will generate a lot of deal flow. The banks will benefit from this.

The advantage for the banks to syndicate with Kholo Capital as opposed to another bank is that the bank does not run the risk of losing the client and banking relationship.

The Fund will invest in both primary and secondary credits. Secondary investments will only be taken from the top tier SA banks and major international banks with stringent credit processes.

In the event of default, the loan will be managed by the originating bank’s infrastructure to work out the loan as well as the Kholo Capital’s experience in working out loans.

The Fund has a pipeline of transactions secured from the major banks which will ensure that a major portion of the fund will be invested on day one.

The Fund will generate quarterly cash distributions for investors from the outset.

The Fund will focus on investing in South African private credit transactions. A separate Dollar fund will be launched for Africa credits.

Fund Strategy...

High Quality Investment

Targeting a large number of high quality investments on a selective basis.

Co-Investing with Banks

Co-investing in credit investments alongside the major banks. Credit approved by the major bank’s credit committee as well as approved by Kholo Capital’s Credit Committee.

Quartely Distributions

Strong downside protections through security and covenants. Quarterly cash distributions to investors.

Types of Investments...

Growth Capital
Acquisition Financing
Leverage Recaps
LBO's / MBO's
BEE Financing
Property Finance

Company Criteria

Robust Companies

Established mid-market or large companies.

Track Record

Track record and Profit After Tax greater than R50 million.

Experienced Management

Experienced management with performance based financial incentives.

Minimal Risk

Minimal or manageable technology risk.

low obsolescence risk

Product lines with extended life cycles and low obsolescence risk.

Diverse Mix

A diverse mix of products, customers and suppliers.

Defensible Market Position

Stable demand for products or services and a defensible market position.

Sound Perfromance

Sound historical financial performance and/or stable, predictable earnings and cash flow.
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