In the latest deal for its third fund, South African Africa’s largest mezzanine fund manager, Vantage Capital, is providing New GX Capital with a $13.7 million expansion capital facility. The funds have been earmarked to finance additional investments planned by the black and family-owned investment company which was established by Khudu Pitje in 2005. No additional details of the transaction were disclosed.
New GX is aiming to grow its interests in a number of sectors, including telecoms infrastructure, energy, waste management and information technology, in South Africa and elsewhere on the continent. To date, its interests include equity stakes in Bravo Group, Dark Fibre Africa, MCT Telecoms, Dartcom, Dynamic Instruments and New GX enviro.
“New GX is one the most impressive black-owned and controlled investment companies that Vantage has come across, mostly as a result of the CEO and founder, Khudu Pitje,” said Luc Albinski, Managing Partner at Vantage Capital. “Khudu has been able to combine an impressive professional background, as a chartered accountant and former banker at JP Morgan, with a very hands-on entrepreneurial drive.”
Vantage Capital is currently in fundraising mode for Fund III, aiming for a total commitment of $270 million for its final closing. The deal marks the fifth investment for Fund III which has a 60% allocation to countries outside South Africa. Among the fund’s transactions are the Servest buyout which took place in 2015, a $20 million investment in Landmark, a R80 million development capital facility in UAG as well as a R250 million expansion capital facility which Vumatel is using to expand its fibre-to-the-home network. All three latter deals have taken place since the beginning of 2016.
Werksmans Attorneys and Weber Wentzel acted as legal counsel to Vantage and New GX, respectively.