Africa’s largest mezzanine fund manager, Vantage Capital, announced that it is providing almost $28 million in funding to over 30 managers at pan-African facilities management company Servest to support greater equity participation by the management team as part of investment company Kagiso Tiso Holdings’ buyout of the company which was announced in late June. Terms of the financing were not disclosed.
Servest, which posted EBITDA of $41 million in 2014, serves 6,500 clients at 24,000 sites in South Africa, East and West Africa as well as the UK. With the KTH acquisition, Servest becomes the largest majority black-owned facilities management company in Africa with over 45,000 employees providing diverse service offerings including facilities management, catering and remote camp management and office services for corporate clients seeking a comprehensive outsourcing solution.
Warren van der Merwe, Chief Operating Officer of Vantage Capital said, “We are proud to support Servest’s management team in the deepest and most cohesive share ownership structure we have seen. The Servest business is a high quality business combining strong defensive and growth characteristics and we look forward to partnering with the company as it executes an exciting growth strategy.”
The Servest investment is Vantage Capital’s thirteenth transaction in Fund II, which is now fully invested. The firm expects to complete raising its third fund in the near future which is targeted to be over $200 million.
Addcapital Africa was the lead corporate advisor to this transaction.