Wednesday, March 20, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > Exits

Vantage exits New GX Capital

Africa Global Funds
Sept. 6, 2018, 9:22 p.m.

Word count: 437

Vantage Capital, Africa’s largest mezzanine debt fund manager, has fully exited its investment in New GX Capital, generating returns for Vantage’s Fund III investors of more than 35%.

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Vantage Capital, Africa’s largest mezzanine debt fund manager, has fully exited its investment in New GX Capital, generating returns for Vantage’s Fund III investors of more than 35%.

New GX Capital is a100% black family owned investment holding company in South Africa. 

Vantage provided R250m ($20m) 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: “We provided R250m of growth capital to New GX which enabled the group to more than double its net asset value over the two-year tenor of our investment.” 

During the investment period, New GX has invested in South Africa’s fast-growing fibre and telecoms infrastructure sectors through investee companies Dartcom and DFA. 

In addition, New GX Enviro has built a first of its kind R200m 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 R100m 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,” added Mogoba.

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.”

Graham McGregor, CFO of New GX, added: “Vantage encouraged us to improve our reporting and risk management capabilities. The Vantage team worked through two challenging cases that we faced and never wavered in their support and understanding for our vision of building a leading black owned investment company.”
To date Vantage has successfully exited eight investments generating proceeds of R2.5bn across its three generations of mezzanine debt funds and achieved an aggregate money multiple of 2.0x.

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