Vantage Capital, one of the leading mezzanine debt fund managers in Africa, has fully exited its investment in New GX Capital, a leading 100 per cent family-owned investment holding company in South Africa
Vantage has successfully exited eight investments generating proceeds of US$170mn across its three generations of mezzanine debt funds and achieved an aggregate money multiple of 2.0x.
This exit achieves returns for Vantage’s Fund III investors of more than 35 per cent. Vantage provided US$20mn to New GX in 2016 to finance follow-on investments in telecommunications infrastructure, waste management and information technology.
Mokgome Mogoba, associate partner at Vantage Capital, said, “New GX invested in South Africa’s fast-growing fibre and telecoms infrastructure sectors through investee companies Dartcom and DFA. New GX Enviro built a first of its kind US$13.22mn multi-purpose waste recycling plant in Atteridgeville township in Tshwane providing employment to township residents and boosting the township economy.”
“Our partnership bolstered local manufacturing capacity by constructing a US$6.61mn fibre manufacturing plant 1km from Mamelodi township in Tshwane. New GX invested in a state of the art information technology platform with partners from India that employs over 200 people. We plan to support more talented black industrialists like Khudu Pitje, the founder and CEO of New GX, as we seek to transform the South African economy and uplift the township economy,” Mogoba added.
Luc Albinski, managing partner at Vantage Capital, added, “Fund III investors have had a bumper ride with strong returns being generated from investments such as Vumatel, Servest and New GX. These results support our view that well-selected and structured mezzanine debt deals can generate returns that rival traditional private equity returns with less downside risk.”
Khudu Pitje, CEO and founder of New GX, said, “Our Partnership with Vantage should be considered as a template for addressing the elusive equity gap in the development of black industrialists. Vantage bridged the gap to develop our family business into a much more meaningful industrial group that will play a significant role in creating jobs for the youth of our country. We will in due course announce the next phase of our development.”