Swiss Investment Fund
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Vantage III Pan African Fund

The Vantage Mezzanine Fund III (“Vantage III” or “the Fund”) is a USD 250m generalist mid-market fund aiming at building a portfolio of 12-20 investee companies across South and Sub-Saharan Africa. The Fund will target all sectors across the spectrum, with potential exposure to renewable energy, manufacturing, services and consumer goods. 50% of SIFEM’s investment is to be deployed to South Africa, and the other 50% to other markets in Sub-Saharan Africa, including East, West and Southern Africa. From a structuring perspective the Fund will invest via mezzanine instruments, a much sough-after finance product with characteristics of both, equity and debt.

Vantage III Pan African Fund

The Vantage Mezzanine Fund III (“Vantage III” or “the Fund”) is a USD 250m generalist mid-market fund aiming at building a portfolio of 12-20 investee companies across South and Sub-Saharan Africa. The Fund will target all sectors across the spectrum, with potential exposure to renewable energy, manufacturing, services and consumer goods. 50% of SIFEM’s investment is to be deployed to South Africa, and the other 50% to other markets in Sub-Saharan Africa, including East, West and Southern Africa. From a structuring perspective the Fund will invest via mezzanine instruments, a much sough-after finance product with characteristics of both, equity and debt.

About the fund

While the development of this asset class has traditionally been slow across all emerging markets, it has been slowest in Sub-Saharan Africa. According to the Emerging Markets Private Equity Association (EMPEA), mezzanine fund managers make up only 1.9% of the region’s private equity managers and mezzanine interest rates remain the highest in the world. This shortfall can particularly be attributed to the difficult business and regulatory environment in many Sub-Saharan African countries. Mezzanine investments rely heavily on the ability to enforce contracts, which are often not supported by documented legal precedents in many African jurisdictions. Hence, such investments require seasoned investment professionals with a strong understanding of both, debt and equity.

Vantage III will be managed by Vantage Capital (“the Manager”), a fund management company based in South Africa. The mezzanine investment team is composed of 14 seasoned investment professionals with a mix of private equity, banking and structured finance experience. Having the second highest BEE (Black Economic Empowerment) rating, the Manager is also committed to the empowerment of historically disadvantaged groups in South Africa, and the majority of Vantage Capital is owned by citizens belonging to such groups.

Investments by the fund

             
Date Name Country Industry Status
2020 Company 1 Egypt Hotels, restaurants and catering Active
2018 Company 2 Mauritius Real estate Active
2020 Company 3 Morocco Healthcare services Active
2019 Company 4 Morocco Other financial services Active
2016 Company 5 Nigeria Real estate Active
2017 Company 6 Nigeria Wholesale and retail sale Active
2018 Company 7 Ivory Coast Conventional energy production and supply Active
2018 Company 8 Kenya Wholesale and retail sale Active
Reference code
2015-01
Status
Active
Date of commmitment
February 2015
Date of exit
-
Fund size
USD
250,000,000
SIFEM commitment
USD
12,000,000
Asset class
Mezzanine
Investment strategy
Investment through Fund
Fund manager
Vantage Capital