Rating based on 8 reviews

Vantage Capital

Updated
  • For mid to large-sized corporates
  • Mezzanine Finance up to R500,000,000
  • Repayment up to 6 years
Vantage Capital homepage
Author Vantage Capital. Screenshot of Vantage Capital website.
[Accessed July 27, 2023]

About Vantage Capital

Vantage Capital is renowned as an investment partner of choice for African businesses. The company employs an entrepreneurial approach by consistently unlocking value on the continent.

Its investment philosophy is grounded in building mutually beneficial long-term relationships with stakeholders and delivering consistent, sustainable returns through responsible and thoughtful investment management.

Unlocking value and creating wealth for stakeholders

Vantage Capital believes in active participation in their investee companies. Their involvement is tailored to the size, performance, and maturity of the portfolio company, along with the skills and experience of the management team. This approach aims to support and grow their portfolio companies, unlock value, and create wealth for all stakeholders.

Factors driving Vantage Capital's success: Trust, professionalism, wealth, and transformation

The four factors that drive Vantage Capital's success are trust, professionalism, wealth, and transformation.

They foster trust through collaboration, open communication, and collective decision-making.

They prioritise professionalism and integrity and build teams of like-minded professionals who share knowledge and explore differing views. They aim to build mutually beneficial relationships with investors and portfolio companies to create wealth for all stakeholders.

Additionally, the company recognises the transformative impact that its funding can have and seeks to facilitate empowerment and human development across its investment portfolio.

Vantage Capital's approach to sustainable development

With over a decade of experience in African investment management, Vantage Capital has established itself as the continent's leading private debt provider. Their success is built on a deep understanding of the African investment landscape, responsible investment management, and a value-add philosophy that prioritises active participation in portfolio companies.

Vantage Capital's commitment to responsible investment management extends beyond its portfolio companies to the broader community. They offer mentorship, training, and financial support to various organisations and individuals. Their approach is grounded in the belief that investment can drive positive change and contribute to the sustainable development of Africa.

Vantage Capital Services

Vantage Capital provides mezzanine finance as an alternative source of risk capital that bridges the gap in funding where traditional banks are reluctant to lend.

As one of the leading independent mezzanine funders on the African continent, they’ve invested in 33 projects in more than 10 African countries since 2006. This experience is advantageous to Vantage Capital, as it enables them to understand the African investment landscape and customise their funding to suit the specific needs of businesses in the region.

How Mezzanine financing can help businesses grow

Mezzanine debt is a flexible financing instrument that allows businesses to make acquisitions. The product is more cost-effective than equity, allowing shareholders to avoid significant dilution of equity stakes. With mezzanine financing, businesses can secure funding that may not be available through traditional lending sources. This product can also come after existing senior debt provided by banks, giving businesses another option for accessing funds.

Long-term financial stability

Vantage Capital's mezzanine funding product is suitable for several transactions, such as business expansion, business acquisitions, share acquisitions, replacement capital, existing debt refinancing, and alternative medium-term funding. However, the company doesn’t offer short-term working capital. Their focus on medium-term financing allows businesses to leverage growth opportunities without sacrificing long-term financial stability.

Maintaining ownership and control through mezzanine finance

One advantage of mezzanine finance is that it allows businesses to maintain ownership and control while accessing the capital needed to fund growth. Shareholders can avoid heavy equity stakes dilution. Vantage Capital's product enables businesses to make strategic investments without being limited by traditional lending constraints.

Besides providing mezzanine finance to businesses, they’re also committed to empowering communities through investment. The company offers mentorship, training, and financial support to various organisations and individuals, acknowledging the transformative effect that their funding can have. Their approach is grounded in the belief that investment can drive positive change and contribute to the sustainable development of Africa.

The benefits of applying for mezzanine finance at Vantage Capital

  • Maintaining ownership and control of the business while accessing growth capital
  • Shareholders can avoid heavy equity stakes dilution
  • Mezzanine financing enables companies to make strategic investments without being limited by traditional lending constraints
  • Vantage Capital has a track record of successful investments across the African continent
  • The product is more cost-efficient than equity, allowing shareholders to avoid heavy equity stakes dilution
  • Mezzanine financing can comfortably rank behind senior debt provided by banks
  • Vantage Capital offers a flexible funding instrument that fills a funding gap where banks lack an appetite to lend
  • Focusing on medium-term funding allows businesses to exploit growth opportunities without sacrificing long-term financial stability.

Vantage Capital – Mezzanine Finance

  • Loan Type Mezzanine Finance
  • Loan Amount up to R500,000,000
  • Repayment 4 years to 6 years

Benefits of Vantage Capital

  • Leading mezzanine funder in Africa.
  • Flexible financing for acquisitions.
  • Medium-term focus for sustainable growth.
  • Maintains ownership and control.
  • Commitment to community empowerment.
  • Proven track record in African investments.
  • Cost-efficient alternative to equity.
  • Fills funding gaps where traditional banks hesitate.
  • Targets entrepreneurs, management, buyers, and BBBEE companies.
  • Mezzanine finance valued between R100-R500 million ($10-40m) with a 4-6 year tenor.
  • Simple application process for mid-large corporates in various sectors.

What are the terms and conditions of Vintage Capital’s mezzanine finance]

Vantage Capital targets entrepreneurs, management, buyers, and BBBEE companies that need financing to expand their businesses, make acquisitions, or increase their equity stake.

Vantage Capital funds medium and large corporates with an enterprise value of over R100m ($10m) that operate in Africa. Ideally, the business should have decent profit generation history, typically > R20m ($2m), and work in all sectors except for highly volatile commodity exposures like mining and farming.

Terms of Vantage Capital’s mezzanine finance

Vantage Capital provides mezzanine finance valued between R100-R500 million ($10-40m) and composed of a subordinated loan with an interest-bearing feature. Additionally, the finance includes a participating preference, known as an "equity kicker," which entitles the lender to a small percentage of the equity upside of the borrower.

The tenor is between four and six years, and the pricing is an interest rate and equity kicker that varies depending on the company's risk and the country in question. Vantage Capital secures second lien security over assets, back-ranked to senior lenders.

Companies are eligible for mezzanine finance from Vantage Capital

Vantage Capital's mezzanine finance suits mid to large-sized corporates operating in Africa. Early-stage or greenfield businesses/projects are also eligible if strong risk mitigants exist (such as additional assets provided as security). Vantage Capital invests in all sectors other than highly volatile commodity exposures such as primary mining or agriculture.

The application criteria

To apply for mezzanine finance at Vantage Capital, applicants must visit the company's website and fill in the application form. The form requires basic information about the applicant's business, such as its size, sector, and history of profit generation.

Vantage Capital's investment team reviews the application and contacts the applicant if interested in the proposal. The investment process includes due diligence, which thoroughly analyzes the company's financial and operational performance. They’ll present a term sheet to the applicant for review and negotiation upon successful due diligence.

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Vantage Capital is a trusted & reliable provider of mezzanine finance

In our review, Vantage Capital adheres to the compliance criteria in accordance with the National Credit Act, where the granting the loan will not cause financial distress to the consumer.

✅ Vantage Capital is a registered credit provider in South Africa: FSP28711

Vantage Capital Contact

Physical Address

  • Ground Floor, 3 Melrose Boulevard, Melrose Arch Johannesburg Gauteng 2076 South Africa
  • Get Directions

Opening Hours

  • not available