Makalani Holdings is a registered financial services provider which has been at the helm of landmark BEE Transactions since its inception. It boasts of having one of its initial engagements managing a R2,5 billion mezzanine asset portfolio. Makalani values financial empowerment and the provision of capital. These are the institution’s focal points.
In handling mezzanine assets, Makalani specialises in deal origination, mezzanine and debt restructuring as well as portfolio management. Considered one of the biggest standalone funds of its kind in South Africa, Makalani has experience and a proven track record. Its specialty lies in its ability to harness the opportunities within identified markets. Its well-established networks in investment banking and institutional markets buoy its successful reputation in the industry.
Mezzanine financing is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. It is ideal when companies and shareholders don’t want to be subjected to the restrictions of more traditional finance or equity solutions. It constitutes debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full.
Makalani, as a black managed and controlled organization pursues a diversified investment portfolio. Makalani normally invests in start-up or greenfields investment opportunities, venture capital, real estate (such as low-cost housing, property development and commercial leasing); working capital as well as bridging loan facilities.
Its mezzanine funding is convenient for prevention of significant equity dilution, avoiding potentially disruptive shareholder disputes, assisting new BEE participants in obtaining equity ownership in established businesses, providing the funding required for the buy-out of a business currently run by a management team or assisting managers in buying into new business ventures and by a large extent helping managers expand their existing businesses by providing expansionary capital which can also be used to fund the purchasing of businesses which complement the existing operations.
Makalani Holdings can be contacted on 011 428 0680.