Ethos Mezzanine Fund will invest in mezzanine financial instruments including, inter alia, second lien loans, convertible loans, payment-in-kind notes and preference shares. Ethos Mezzanine Fund will target market-leading companies with a sustainable competitive advantage and/or critical success factors with proven track record of sufficiently predictable free cash flow to service debt and experienced management teams.
Ethos Mezzanine Fund will focus on transactions in South Africa and other select countries in sub-Saharan Africa (up to 30% of Ethos Mezzanine Fund's committed capital may be invested in companies whose primary business activities are located outside of South Africa in sub-Saharan Africa).
Ethos Capital intends to commit R500 million to Ethos Mezzanine Fund, subject to Ethos Mezzanine Fund being raised and Ethos Capital's commitment not exceeding 33% of the total commitments received by Ethos Mezzanine Fund on final close. Ethos Capital may increase this intended commitment to Ethos Mezzanine Fund prior to the final close of Ethos Mezzanine Fund.