Kholo Capital Mezzanine Debt Fund I has provided US$17 million in mezzanine debt funding to South African ICT distributor, DCC Holdings to refinance existing debt and provide financial flexibility for DCC’s long-term growth strategy.
The transaction was supported by South African private equity, Kleoss Capital, which backs businesses in the country.
Kholo Capital backs DCC’s long-term growth strategy
Mokgome Mogoba, Managing Partner and Founder of Kholo Capital: “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.”
DCC is a South African distributor of ICT products and solutions. Founded in 1988, it offers a portfolio of products across personal computing, printing, enterprise infrastructure and software. Additionally, it distributes products from global technology manufacturers, including HP, Dell and Lenovo, to an extensive network of resellers, system integrators and retailers.
It is an established participant in the Southern African ICT distribution market, playing an important role in the ICT supply chain by connecting international technology manufacturers with local resellers and retailers. The company also invests in youth employment, education for learners with disabilities, and SMEs, reflecting its commitment to supporting inclusive growth through social impact.
Kleoss Capital and Kholo Capital collaborate on funding
Hale Matsipa, Managing Partner of Kleoss Capital: “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: “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.”
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