Vantage provides funds for Servest investment
By GIFT NDOLWANE
JOHANNESBURG, (CAJ News) – VANTAGE Capital, the prominent fund manager,has provided R356 million ($28 million) of funding to over 30 Servest managers in a move aimed at increasing management’s shareholding in thecompany.
This is part of the recently-announced Kagiso Tiso Holdings (KTH) buyout of the business.KTH is a leading black-owned South African investment holding company.With the KTH acquisition, Servest becomes the largest majority black-owned facilities management company in Africa with over 45 000 employees providing integrated facilities management solutions to more than 6 500 clients on 24 000 sites across nine African countries and the United Kingdom.
Warren van der Merwe, Chief Operating Officer of Vantage Capital said the company was proud to support Servest’s management team.“The Servest business is a high quality business combining strongdefensive and growth characteristics and we look forward to partneringwith the company as it executes an exciting growth strategy,” van derMerwe said.
Johnny Jones, Associate Partner at Vantage Capital, said the investment highlighted the unique benefits of mezzanine funding which allows management shareholders to use our funding to increase their equity participation.
“This type of transaction is at the heart of our firm’s investmentstrategy of supporting strong management teams of Pan-African businesses,”said Jones.
The Servest investment is Vantage Capital’s 13th transaction in Fund II,which is now fully invested. Vantage Capital is soon to complete fundraising for its Fund III, which is targeted to be over R2,5 billion ($200m), with a 50 percent allocation to investments outside South Africa.Addcapital Africa was the lead corporate advisor to this transaction.
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