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Kholo Capital’s Mezzanine Debt Fund I has provided $17 million in mezzanine debt to DCC Holdings, a South African ICT distributor. DCC will use the money to refinance existing debt and support its growth plans.
“DCC’s shareholders, made up of senior management and Kleoss Capital, are pleased to bring Kholo Capital into the capital structure of the DCC group. DCC has grown steadily over the years by adding key brands and expanding within our existing vendor relationships. Together with our capital partners, we look forward to the next chapter with continued optimism,” said Carlos Ferreira, CEO of DCC.
DCC was founded in 1988 and is based in Johannesburg. It distributes technology products and solutions to resellers across Southern Africa, from micro enterprises to large organisations.
Its ranges include personal computing, printing, enterprise infrastructure and software, including products from HP, Dell and Lenovo. The privately held company focuses only on channel operations.
It has more than 300 staff and branches in Durban, Port Elizabeth, Cape Town, Namibia, Botswana, Mozambique and Zambia. Most of its business is in South Africa, but it also serves the wider Southern African region.
“We are delighted to support DCC’s highly experienced management team as the business enters its next phase of growth. This transaction shows how structured mezzanine debt can be used to improve a company’s capital structure, refinance existing debt and give it the financial flexibility to support sustainable growth. DCC has a strong market position built on long relationships with global technology manufacturers, a wide reseller network and well-established logistics and distribution capabilities,” said Mokgome Mogoba, managing partner and co-founder of Kholo Capital.
Kholo Capital is a mezzanine debt fund manager founded by Mokgome Mogoba and Zaheer Cassim, both former partners and shareholders of Vantage Capital.
Its management team has more than 45 years of combined credit and investment experience across senior debt, mezzanine debt and private equity. The firm says it has deployed over R40 billion in more than 80 transactions across more than 10 African countries. Kleoss Capital invested in DCC through its second private equity fund.
“Kleoss Capital has valued the opportunity to work with Kholo Capital on this transaction, which positions DCC for its next phase of growth. It also reflects the positive momentum in South Africa’s private markets and marks another successful collaboration between Kleoss Capital and a fellow private markets investor. We look forward to continuing our partnership with the Kholo Capital team,” said Hale Matsipa, managing partner at Kleoss Capital.
