DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH ("DEG") and four other European investors are contributing a total of approximately $60m to Vantage's third fund
JOHANNESBURG, South Africa, April 28, 2015 (GLOBE NEWSWIRE) -- Vantage Capital (http://www.vantagecapital.co.za), Africa's leading mezzanine debt provider, today announced that the DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH ("DEG") and four other European investors are contributing a total of approximately $60m to Vantage's third fund. DEG's commitment to Fund III is $20m. In addition the DEG is providing $15m to a co-investment with Vantage in Surfline Communications, the leading 4G LTE network operator in Ghana. Vantage invested $15m in Surfline from its second fund late last year.
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Gunnar Stork, Director Equity & Mezzanine for Africa and Latin America, said, "DEG is excited to partner with Vantage to invest in Surfline, a company that we believe will contribute to improve internet connectivity in Ghana to bridge the digital divide. We are pleased to continue our partnership with Vantage in general by investing in Fund III, after having already been an investor in Vantage's first Mezzanine Fund. We believe in the mezzanine asset class in Africa and see it as an important instrument to facilitate economic growth." The funds committed by DEG to Surfline will be used for the on-going expansion of the company's 4G LTE network in Ghana as well as to enhance its product distribution and marketing capabilities.
Colin Rezek, Managing Partner at Vantage, said, "We are extremely pleased to receive the strong endorsement of DEG for our third mezzanine fund, which will employ a pan-African investment approach to focus on high-growth markets such as Ghana, Nigeria, the East African Community members and some of the Southern African Development Community (SADC) countries. We also welcome DEG as a co-investor in Surfline, one of the most exciting deals out of the over 600 investment opportunities we have reviewed in Fund II."
DEG joins other investors that have committed funds to Vantage, including a major South African pension fund and foreign investors like the Swiss Investment Fund for Emerging Markets ("SIFEM") which is advised by Obviam. Obviam's CIO, Andrea Heinzer stated: "Based on Vantage's robust and positive track record in South Africa, we see Vantage Capital as the ideal partner for SIFEM to develop the mezzanine asset class in Sub-Saharan Africa."
Vantage has made 12 investments in its second fund; 90% of available funds have been invested. Over half of the capital deployed has gone into growth projects such as Surfline. Vantage is targeting a final close of its third mezzanine fund at approximately $250 million later this year.
Distributed by APO (African Press Organization) on behalf of Vantage Capital Group.