Independent fund manager Tamela Capital Partners has announced that the Tamela Mezzanine Debt Fund 1 has reached R620 million.
The fund’s objective is to finance mid-market companies that wish to grow their businesses, enter new markets and accelerate growth through expanding operations or consummating strategic acquisitions.
Tamela Capital Partners, a subsidiary of Tamela Holdings, describes itself as a credit-oriented alternative asset management firm in Sub-Saharan Africa, with a focus on delivering attractive risk-adjusted returns and capital preservation for their investors.
“Tamela initially raised R420m in 2019 when it launched. Investors in the Tamela Mezz debt fund are pension and retirement funds and life insurance companies,” the company said.
Tamela managing director Sydney Mhlarhi said the company sought to increase the capital fund “urgently”.
“We have a good pipeline of transactions that are at various stages of evaluation. We are targeting a final close of R1 billion in the upcoming months,” he said.
According to the company, the fund provided capital ranging from R50m to R150m per investee company, giving entrepreneurs alternative financing options and strategic support.
“Tamela provides capital for companies that are entrepreneur-partnering transactions, in which capital is provided in support of established entrepreneurs. The fund provides funding for BEE transactions and buys and builds opportunities,” it said.
The company said while it funded companies based anywhere in South Africa, the fund’s mandate allowed it to invest a maximum of 20% of total funds in Lesotho, Swaziland, Namibia and Botswana.
According to Tamela, it lends to companies that have revenue that is greater than R100m, value proposition, identified organic growth, high free cash flow generation, and cash conversion rates.
Companies that seek to apply for funding should send an email to info mail: [email protected].
BUSINESS REPORT ONLINE