Investec Asset Management has exited its mezzanine investment in SA Taxi, the South African taxi financing company which it originally backed through its first private equity fund in 2011. Terms of the deal were not disclosed.
SA Taxi extends credit to minibus taxi owners and entrepreneurs as well as providing its clients with a range of additional services to help them manage and grow their businesses. Currently, it has financed more than 27,000 taxis and has a loan book of over R7.2 billion (approximately $538 million) in size.
Commenting on the deal, Gerben Dijkstra, an Investment Principal with Investec said, “In supporting a firm such as SA Taxi, with a high-quality service offering led by an experienced management team, we are very excited to have been a part of catalyzing a vital market sector that has a stimulating effect on the national economy at many different levels.”
The deal is the second private equity-related transaction for Investec in April. Earlier the firm announced it had acquired Grupo San Jose & Lopez, a major road freight transporter between North Africa and Europe, in an undisclosed private equity secondary deal. That deal was made on behalf other Investec’s second fund, which closed in early 2016 with $295 million in commitments.