Mezzanine & Credit
In July 2016, Ethos acquired Mezzanine Partners, a leading, independent South African provider of mezzanine capital established in 2005.
Ethos Mezzanine Partners intends to establish Ethos Mezzanine Partners 3, its third successor closed-end mezzanine debt fund dedicated to providing mezzanine and quasi-equity growth or acquisition financing solutions to companies in southern and sub-Saharan Africa.
Ethos Mezzanine will invest in a broad spectrum of mezzanine financial instruments, each one tailored to meet the needs of a specific transaction or borrower. These instruments will include inter alia second lien loans, convertible loans, payment-in-kind notes and preference shares.
Ethos Mezzanine Partners 3 will target providing intermediate capital to market-leading companies with a sustainable competitive advantage and/or critical success factors, and a proven track record of delivering predictable/no cyclical free cash flow to service debt. Moreover, the Fund will target investments in businesses that have experienced management teams and shareholders of reference that meet its requirements.
Ethos Mezzanine Partners 3 will focus on investments in select jurisdictions in South and sub-Saharan Africa.
Ethos Capital intends to commit up to ZAR500 million to Ethos Mezzanine Partners 3, subject to its commitment not exceeding 33% of the total commitments received by Ethos Mezzanine Partners 3 on final close. Ethos Capital may increase this intended commitment to Ethos Mezzanine prior to the Fund’s final close.
Ethos Mezzanine Partners has successfully raised two mezzanine and one credit fund since 2005. It has also performed the credit portfolio management function in respect of south and sub-Saharan African fixed interest and money market mutual funds / segregated mandates across 10 different countries.
Ethos Mezzanine Partners’ traditional long-horizon investment model and its underlying mezzanine and credit investment philosophy remains unchanged.
|FUND||VINTAGE YEAR||CAPITAL RAISED||FUND STATUS|
|ETHOS MEZZANINE PARTNERS 3||2017||Target US$150-200 million||Imminent Capital raising|
|CREDIT PARTNERS 1||2010||R450 million||Fully invested, significantly realised|
|MEZZANINE PARTNERS 2||2008||R560 million||Fully invested, significantly realised|
|MEZZANINE PARTNERS 1||2006||R443 million||Fully invested, significantly realised|