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The Kholo Capital Mezzanine Debt Fund I has provided R275 million ($17 million) in mezzanine debt financing to South African ICT distributor DCC Holdings.
The funding will be used to refinance existing debt and support the company’s growth plans.
Founded in 1988 and headquartered in Johannesburg, DCC distributes technology products and solutions across Southern Africa. Its portfolio spans personal computing, printing, enterprise infrastructure and software, including products from HP, Dell and Lenovo. Kleoss Capital invested in DCC through its second private equity fund.
Mokgome Mogoba, managing partner and co-founder of Kholo Capital, commented: “We are delighted to support DCC’s highly experienced management team as the business enters its next phase of growth. The business is backed by Kleoss Capital, a highly competent private equity investor. This transaction demonstrates how structured mezzanine debt capital can be used to optimise a company’s capital structure, refinance existing debt and provide the financial flexibility required to support sustainable growth. DCC has established itself as one of South Africa’s leading ICT distributors, with a strong market position underpinned by longstanding relationships with leading global technology manufacturers, an extensive reseller network and well-established logistics and distribution capabilities.”
Hale Matsipa, managing partner of Kleoss, said: “Kleoss Capital has valued the opportunity to work with Kholo Capital on this transaction, which positions DCC for its next phase of growth. It also reflects the positive momentum in South Africa’s private markets and marks another successful collaboration between Kleoss Capital and a fellow private markets investor. We look forward to continuing our partnership with the Kholo Capital team.”
Carlos Ferreira, CEO of DCC, added: “DCC’s shareholders, comprising senior management and Kleoss Capital, are pleased to introduce Kholo Capital into the capital structure of the DCC group. DCC has been growing steadily over the years with the addition of certain key brands and the expansion of our existing footprint within our established vendor relationships. Together with our capital partners, we look forward to the next chapter in the evolution of the business with continued optimism.”
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