The funding will refinance existing debt and support DCC’s long-term growth strategy
, /PRNewswire/ — Kholo Capital Mezzanine Debt Fund I (“Kholo Capital”) (www.KholoCapital.com) today announced the provision of R275 million (US$17 million) in mezzanine debt funding to DCC Holdings Proprietary Limited (“DCC”), a leading South African information and communications technology (“ICT”) distributor with an established presence across Southern Africa. The funding will refinance existing debt and support DCC’s long-term growth strategy.
DCC is a leading South African distributor of ICT products and solutions, offering a comprehensive portfolio of products across personal computing, printing, enterprise infrastructure and software. The business distributes products from leading global technology manufacturers, including HP, Dell and Lenovo, to an extensive network of resellers, system integrators and retailers across Southern Africa.
Founded in 1988, DCC has grown into an established participant in the Southern African ICT distribution market, with a distribution network and logistics infrastructure serving customers across the region. The business plays an important role in the ICT supply chain, connecting international technology manufacturers with local resellers and retailers.
Mokgome Mogoba, Managing Partner and 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.”
Zaheer Cassim, Managing Partner and Founder of Kholo Capital, added: “Over nearly four decades, DCC has built a formidable distribution platform, combining extensive market reach, strong logistics capabilities and a deep understanding of its channel partners’ needs. Beyond its commercial strengths, DCC’s investment in youth employment, support for learners with disabilities and SME reseller development reflects a commitment to inclusive growth. Its adoption of solar energy and water-saving measures further demonstrates a practical approach to responsible business. We believe DCC is well positioned to capitalise on opportunities across the Southern African ICT market, and we are pleased to partner with management in advancing growth that delivers both commercial value and meaningful social impact.”
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.”
Deneys acted as legal counsel to Kholo Capital.
Webber Wentzel acted as legal counsel to DCC.
Distributed by APO Group on behalf of Kholo Capital.
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For more information contact:
Zaheer Cassim
Managing Partner – Kholo Capital Mezzanine Debt Fund I
[email protected]
Tel: +27-83-786-0845
Mokgome Mogoba
Managing Partner – Kholo Capital Mezzanine Debt Fund I
[email protected]
Tel: +27-79-631-5860
Kholo Capital Mezzanine Debt Fund I
34 Melrose Boulevard
Melrose Arch
2076
South Africa
About Kholo Capital Mezzanine Debt Fund I:
Kholo Capital Mezzanine Debt Fund I is a R1.4 billion specialist fund providing flexible mezzanine debt solutions to mid-market businesses across Southern Africa. The fund is designed to bridge the gap between senior debt and equity, enabling companies to access growth and acquisition capital while minimising equity dilution for shareholders.
The fund typically provides investments ranging from R70 million to R205 million to businesses generating a minimum of R25 million in EBITDA per annum. Kholo Capital invests in sectors with high social impact including infrastructure, financial services, healthcare, education, telecommunications, renewable energy, food and services. The investment mandate excludes primary mining, primary agriculture, micro-lending, gambling, ammunition, tobacco, hard liquor and government-related businesses. Larger transactions can be supported through co-investment from limited partners or through syndicated structures.
Kholo Capital provides tailored funding solutions for a variety of transaction types, including growth capital, acquisitions, management buy-outs, leveraged buy-outs, private equity transactions, share buybacks, refinancing of shareholder loans and dividend recapitalisations. The fund also partners with businesses to optimise their capital structures, including refinancing portions of senior bank debt to improve cash flow and create additional headroom for reinvestment and expansion.
Mezzanine debt funding is typically structured as a 4- to 7-year instrument with flexible, bullet repayment profiles, allowing companies to service interest during the term while deferring capital repayment to maturity. This structure supports stronger cash flow management and enables businesses to reinvest in growth initiatives. The fund targets returns of more than 17%, combining yield with potential equity upside.
Kholo Capital adopts a disciplined investment approach, with leverage typically capped at 3.5x to 4.0x total debt to EBITDA and up to 80% loan-to-value, ensuring a minimum 20% equity buffer. Investments are made in established, cash-generative businesses, and the fund does not invest in distressed situations or standalone greenfield projects without appropriate guarantees from qualifying operating entities.
Founded in 2020 by Mokgome Mogoba and Zaheer Cassim, Kholo Capital is a specialist alternative investment manager with deep expertise across senior debt, mezzanine debt and private equity. The investment team has more than 100 years of combined experience and has collectively deployed over R50 billion across more than 90 transactions in over 10 African countries. The firm is led by a cohesive and experienced team with a long-standing track record of working together over two decades.
Website: www.KholoCapital.com
SOURCE Kholo Capital
