Latest news with #KholoCapital
Zawya
08-07-2025
- Business
- Zawya
Kholo Capital provides Bayport South Africa with a R200 million mezzanine debt growth funding facility to support the roll out of the Bayport South Africa (SA) Financial Wellness Solutions Programme
Kholo Capital Mezzanine Debt Fund I ('Kholo Capital') ( announced today the injection of a R200 million mezzanine debt growth funding facility into Bayport Securitisation ('Bayport South Africa' or 'Bayport SA') to support the roll out of the Bayport SA Financial Wellness Solutions Programme. Bayport SA is committed to alleviating employee over-indebtedness in South Africa and promoting long-term financial wellness of employees. This is achieved by offering them with practical debt solutions, which include debt reduction through negotiating settlement terms and discounts with creditors, halting legal action where possible, and improving employees' credit scores, through its financial wellness solutions programme. Through the Bayport SA Financial Wellness Programme, Bayport SA addresses the widespread issue of over-indebtedness among South African employees. By providing tailored debt reductions (wherein the benefit of all settlement discounts negotiated with creditors is passed to the employees), debt consolidation and rehabilitation solutions, Bayport enables employees to regain financial stability and improve their long-term financial standing. The programme includes structured debt management processes and financial literacy initiatives, ensuring that employees not only reduce their debt obligations and debt repayments resulting in financial breathing room but also develop healthier long-term financial habits. Recent market data indicates that more than 60% of employed individuals in South Africa are struggling with over-indebtedness, while less than 14% of the South African population can afford to retire. Alarmingly, an average of 74% of income is spent on debt repayments, with 49% of all consumers falling more than one month behind on at least one loan. These findings highlight a critical socioeconomic issue that not only affects individual well-being and family units, but also impacts workplace productivity, stability, and staff morale. As a vital component of its initiative, Bayport SA offers employees, through partnerships with employers, a structured 10-week financial wellness journey aimed at providing both immediate relief and fostering long-term behavioural change. Employees can expect significant improvements in monthly cash flow (i.e., including significant debt reduction), enhanced expense management, and the ability to effectively plan for future financial milestones. The program includes personal financial health assessments, individualized coaching, and practical exercises to build sustainable financial habits. Additionally, employees engage in peer-led group sessions that promote accountability and support the development of effective money management practices. To further amplify the financial wellness program's impact, Bayport SA supplies a range of digital tools and support services. These include a gamified financial wellness app that facilitates goal tracking and provides access to educational resources, along with one-on-one sessions with personal money coaches throughout the journey. The Bayport SA Academy offers online financial education and workshops to enhance financial literacy, while structured emergency credit facilities provide responsible short-term relief as an alternative to high-cost payday loans. Bayport SA is currently in partnership with more 70 employers across various industries in South Africa, including blue-chip corporations in FMCG, financial services, telecommunications, automotive, and mining sectors, as well as government entities at local, provincial, and national levels. Mokgome Mogoba, Managing Partner and Founder at Kholo Capital, remarked: 'The positive ESG and social impact on the South African society by Bayport SA is substantial as the company provides significant debt relief to over-indebted employees. We are very passionate about financial inclusion and this investment achieves that. Bayport SA's intervention in the South African economy is significant and measurable. Settlement discounts negotiated with creditors on behalf of employees can range between 25% and 80% of the total debt amount outstanding. The average increase in monthly disposable income is R7,450, representing 32.8% of the average basic salary of R22,865. This increase in financial flexibility is directly correlated with a substantial reduction in the total debt amount outstanding and reduction in monthly debt repayment obligations.' Zaheer Cassim, Managing Partner and Founder at Kholo Capital, asserted: 'Bayport SA's securitization program, is one of the best in South Africa. There has never been any payment defaults or covenant breaches, even during the challenging period of the COVID-19 pandemic. The securitization program is supported by leading South African institutional investors and South African banks. Bayport SA is also highly regarded for its first-class management team, transparent reporting practices and strong management engagement, with regular investor reporting and quarterly meetings with investors. The business is supported by strong shareholders of reference which include the Public Investment Corporation (PIC). We are very pleased with this investment in Bayport SA, and we look forward to supporting this highly talented and highly motivated management team in their vision to grow the business, by providing financial wellness solutions to the South African people.' Alfred Ramosedi, Chief Executive Officer of Bayport SA, commented: 'We are proud to partner with Kholo Capital, whose commitment to impact investing aligns seamlessly with our mission to drive meaningful financial change. As one of South Africa's leading financial wellness companies, this funding will enable us to scale our reach and deepen our impact – empowering even more South Africans with the tools and support to break free from debt and build financially resilient futures.' Norton Rose Fulbright acted as legal counsel to Kholo Capital and Werksmans acted as legal counsel for Bayport SA. Distributed by APO Group on behalf of Kholo Capital. Notes to Editors About R1,4 billion Kholo Capital Mezzanine Debt Fund I Please keep Kholo Capital Mezzanine Debt in mind whenever equity funding is needed, we can plug some of the equity funding gap with mezzanine debt loan funding (subordinated loans) so that shareholders don't give up too much equity and don't suffer too much equity dilution. The R1,4bn Kholo Capital Mezzanine Debt Fund provides mezzanine debt funding R70m to R205m to medium sized businesses generating minimum R25m EBITDA per annum. We can invest in all sectors including real estate (but excluding primary mining, resources, commodities, primary farming, micro lending, gambling, ammunition, hard liquor and tobacco). However, we can invest in mining services/products, mining logistics/transportation, mineral processing, and Agri-processing. We provide growth capital and acquisition funding to mid-market companies with operations in South Africa, Botswana, Namibia, Swaziland, or Lesotho. Investment tenor 4 to 7yrs targeting returns above 17% (interest rate plus equity upside). Leverage up to 3,5x to 4x Total Debt (senior debt and mezzanine debt) to EBITDA and/or up to 80% LTV. Kholo Capital is passionate about investing in sectors of the Southern African economy with high social impact including financial inclusion, affordable housing, healthcare, education, renewable energy, food security, ICT, and infrastructure. Our guiding business principles include commitment to add sustainable value to our investee companies and to adhere to the best ESG practices. The Fund uses the United Nation's 17 Sustainable Development Goals as guiding principles with key focus on those linked to job creation and sustainable growth. We also fund share buy backs, refinancing of shareholder loans and dividend recaps. We also fund management buy-outs, leveraged buyouts and private equity buy-outs. We can also pay down portion of senior debt bank funding especially where the senior debt has steep capital repayments, in order to create cashflow headroom for the business. Mezzanine debt loan funding is typically 5-6yr flexible bullet loan funding with capital repayable right at the end on the maturity of the loan. The business only has to service interest payments during the loan tenor thereby creating cashflow headroom and the business can re-invest the excess cashflows for growth. Business or project must be generating minimum R25m EBITDA per annum at the time of investment. Meaning we can't fund greenfield projects or new developments on a ring-fenced basis. We can look at greenfield opportunities or new projects provided there is an external guarantee (i.e., third party guarantee) from a business (i.e., balance sheet) that generates the minimum R25m EBITDA. The guarantee can fall away once the business meets the threshold and covenants are met. Also, we can't fund distressed assets or big turnarounds. Kholo Capital is a specialist alternative investment fund management company with deep experience and track record in private markets. It was founded in 2020 by Mokgome Mogoba and Zaheer Cassim. The Kholo Capital investment team has more than 100 years of collective credit and investment experience and is highly skilled in senior debt, mezzanine debt and private equity. The investment team has a strong track record in the credit and investment space and has invested in excess of R50bn of mezzanine debt, private equity and senior debt investment transactions in over 90 transactions in more than 10 African countries. Kholo Capital is managed by a cohesive, dynamic and nimble team and the management team has worked together over the last 21 years. Website: Website: For more information contact: Mokgome Mogoba Managing Partner – Kholo Capital Mezzanine Debt Fund I mokgome@ Tel: +27-79-631-5860 Zaheer Cassim Managing Partner – Kholo Capital Mezzanine Debt Fund I zaheer@ Tel: +27-83-786-0845
Zawya
27-05-2025
- Business
- Zawya
Kholo Capital and Maia Capital provide Catapult Group with R250 million mezzanine debt funding
Kholo Capital Mezzanine Debt Fund I ('Kholo Capital') ( and Maia Capital Partners ('Maia Capital') announced today that they have provided R250 million mezzanine debt funding to Catapult Group ('Catapult') to fund growth capital expenditure and to refinance a portion of existing senior debt to create cashflow headroom for the business as it embarks on its next growth phase. Catapult is a leading South African manufacturer and distributor of specialized building products, with a strong presence in the commercial, industrial, and residential real estate sectors with a 3,000-store retail distribution footprint. Catapult expanded in the past few years through strategic acquisitions, including the acquisition of Everite and Swartland businesses. Everite is known for its comprehensive range of Nutec products. The Nutec brand is Everite's proprietary fibre cement product line, encompassing ceilings, cladding, roofing (i.e., fascia boards, barge boards and roofing slates), facades, windowsills, cornices, building columns and lightweight Autoclaved Aerated Concrete ('AAC') bricks. Swartland is a market leading manufacturer of quality wood window frames, doors, garage doors, skirtings, finishes, par awnings, XPS insulation, cornices and lightweight aluminium-alloy window frames and doors. Zaheer Cassim, Managing Partner and Founder at Kholo Capital, remarked: 'We are delighted to be part of this growth and refinancing transaction with the Catapult Group. Our R250 million investment will assist the Catapult Group with its growth objectives and provide additional financial flexibility which positions the company for sustained growth and further value creation. This growth will in turn create new jobs over the investment period, which is a key focus of the Kholo Capital investment mandate.' Mokgome Mogoba, Managing Partner and Founder at Kholo Capital, observed: 'Catapult is supported by a strong management team and established equity sponsors with solid net asset bases and extensive industry expertise. The business has consistently delivered strong earnings performance, supported by long-established brands, highly recognizable building products, and a dominant market share in its key segments. We look forward to providing strategic input, adding value and propelling the Catapult Group to achieve its growth objectives.' Tshandu Ramusetheli, CEO of Maia Capital, said: 'This significant investment highlights Maia Capital's commitment to fostering sustainable development, particularly in one of our key impact themes of access to affordable, quality housing. By supporting Catapult, we are taking meaningful steps to ensure that all individuals have access to essential housing and services. This partnership exemplifies our belief that impactful investments can drive both economic growth and social progress.' Robin Vela, Chairman of Catapult Group, commented: 'The support from Kholo Capital and Maia Capital will enhance our ability to deliver long-term value to our customers, employees, and shareholders. Importantly, the investment will also facilitate job creation and contribute positively to the broader South African economy, an outcome we are deeply committed to. We extend our gratitude to Kholo Capital, Maia Capital, our equity partners and our management team for their unwavering belief in Catapult's potential. Together, we are well positioned to achieve our strategic objectives and unlock sustainable growth.' Norton Rose Fulbright acted as legal counsel to Kholo Capital and Maia Capital Distributed by APO Group on behalf of Kholo Capital. For more information contact: Zaheer Cassim Managing Partner – Kholo Capital Mezzanine Debt Fund I zaheer@ Tel: +27-83-786-0845 Mokgome Mogoba Managing Partner – Kholo Capital Mezzanine Debt Fund I mokgome@ Tel: +27-79-631-5860 Tshandu Ramusetheli Chief Executive Officer – Maia Capital Partners tshandu@ or invest@ Tel: +27-72-197-8752 Websites: About R1,4 billion Kholo Capital Mezzanine Debt Fund I: Kholo Capital is a specialist alternative investment fund management company with deep experience and track record in private markets. It was founded in 2020 by Mokgome Mogoba and Zaheer Cassim. Kholo Capital provides growth capital, acquisition funding and BEE financing into sectors of the Southern African economy with high social impact including affordable housing, healthcare, education, renewable energy, telecoms, financial technology and infrastructure. Our guiding business principles include commitment to add sustainable value to our investee companies and to adhere to the best ESG practices. The Fund uses the United Nation's 17 Sustainable Development Goals as guiding principles with key focus on those linked to job creation and sustainable growth. The Kholo Capital investment team has more than 100 years of collective credit and investment experience and is highly skilled in senior debt, mezzanine debt and private equity. The investment team has a strong track record in the credit and investment space and has invested in excess of R50bn of mezzanine debt, private equity and senior debt investment transactions in over 90 transactions in more than 10 African countries. Kholo Capital is managed by a cohesive, dynamic and nimble team and the management team has worked together over the last 21 years. About Maia Capital Partners: Maia Capital Partners was established in 2020 with a mission to generate competitive financial returns while driving positive social and environmental impact through private debt investments. The firm reached its final close in June 2024, raising over R1 billion from South African pension funds. The Maia Debt Impact Fund I is dedicated to driving economic transformation by providing mezzanine debt funding to mid-market companies across a variety of sectors, including renewable energy, affordable housing, healthcare, education, financial inclusion and more. Maia Capital's focus on economic transformation ensures we support industries that promote infrastructure development, job creation, and sustainable industrialization, while remaining open to a wide range of impactful transactions. Maia Capital Partners was founded by a team of seasoned investment professionals with over 80 years of combined experience in private markets, infrastructure, and impact investing. The firm is headquartered in Johannesburg, South Africa.
Zawya
25-02-2025
- Business
- Zawya
Kholo Capital Mezzanine Debt Fund I reaches Final Close at R1,4 billion
Kholo Capital Mezzanine Debt Fund I ('Kholo Capital' or 'the Fund') ( has reached final close at R1,4 billion in commitments, in order to make long-term mezzanine debt investments in small and medium sized businesses in Southern Africa (i.e., South Africa, Botswana, Namibia, Lesotho and Swaziland). The funding provided to these businesses will positively impact communities and support economic growth, job creation, alleviation of poverty and advancement of transformation in the Southern African region. The Fund provides growth capital, BEE Financing and acquisition funding into sectors of the Southern African economy with high social impact including social housing, healthcare, education, renewable energy, food and food security, ICT, financial technology and infrastructure. The Fund follows the United Nation's 17 Sustainable Development Goals as guiding principles with key focus on those linked to Job Creation (i.e., Decent work and Economic growth, Reduced Inequalities and Gender Equality) and those linked to Sustainable Growth (i.e.; Affordable and Green Energy, Sustainable Cities and Communities and Climate Action). The R1,4 billion in commitments was secured from leading South African institutional investors. Kholo Capital believes that mezzanine debt funding, being a subordinated loan position that sits between senior debt and equity in the capital structure of a business, is attractive because it plugs any equity funding gaps and provides businesses with a tailored and flexible loan solutions in support of their growth requirements. Kholo Capital's investment criteria include investing in small and medium sized businesses generating minimum R25m EBITDA across various growth sectors of the Southern African economy, thereby providing much needed access to capital within a preferred range of R70m to 200m per investment. The benefit of mezzanine debt loan funding lies not only in the ability to tailor funding terms like debt servicing requirements (e.g., providing capital repayment moratoriums), and also because it is a loan funding instrument it avoids the significant equity dilution which is sometimes the sad reality when businesses try to fund their growth ambitions by raising pure equity funding. Mokgome Mogoba, Founder and Managing Partner at Kholo Capital, said: 'We are very bullish about South Africa, the South African economy and the future prospects of this beautiful country and the surrounding region. We are heartened and motivated by the optimism and the resilience of its people. We aim to create in excess of 500 new jobs at a rate of more than 40 nett jobs created per investment and we have committed to investing more than 50% of the Fund in black empowered companies. We are excited at the opportunity to bring creative funding solutions to the Southern African market and to form long term sustainable partnerships with businesses over a 4 to 7-year investment horizon, realising not only strong commercial returns for our investors, but also providing transformational funding that has a positive ESG impact on businesses and surrounding communities as we also look to boost our rural and township economies.' Zaheer Cassim, Founder and Managing Partner at Kholo Capital, added: 'Mezzanine debt funding is non-dilutive by nature and therefore is an attractive funding option for family-owned businesses, BEE companies or any business that needs to raise capital and hold onto the equity in the business. And with the banks becoming more risk averse due to regulatory requirements, lending to small and medium sized businesses has reduced, creating a great opportunity for flexible mezzanine debt structures. We are grateful that our investors recognise the opportunity and have shown us tremendous support.' With a strong pipeline of opportunities, Kholo Mezzanine Debt Fund I is well positioned to advance its investment objectives, and make a sustainable impact in support of the real economy. Distributed by APO Group on behalf of Kholo Capital. For more information contact: Mokgome Mogoba Managing Partner Kholo Capital Mezzanine Debt Fund I mokgome@ Tel: +27-79-631-5860 Zaheer Cassim Managing Partner Kholo Capital Mezzanine Debt Fund I zaheer@ Tel: +27-83-786-0845 About Kholo Capital Mezzanine Debt Fund I: Kholo Capital is a specialist alternative investment fund management company with deep experience and track record in private markets. It was founded in 2020 by Mokgome Mogoba and Zaheer Cassim. The Kholo Capital investment team has more than 100 years of collective credit and investment experience and is highly skilled in senior debt, mezzanine debt and private equity. The investment team has a strong track record in the credit and investment space and has invested in excess of R50bn of mezzanine debt, private equity and senior debt investment transactions in over 90 transactions in more than 10 African countries. Kholo Capital Mezzanine Debt Fund I is managed by a cohesive, dynamic and nimble team and the management team has worked together over the last 21 years.
