Tamela Capital Partners, a subsidiary of Tamela Holdings, has annouxned the first closing of the Tamela Mezzanine Debt Fund 1 (Tamela Mezz Fund) at R420m.

The key principals of the Tamela Mezz Fund are Messrs Vusi Mahlangu, Moeketsi Mokuoane and Sydney Mhlarhi.

“The Tamela Mezz Fund remains open to new investors and we expect to reach final close in the next 14 months at about R1.5bn,” said Mokuoane.

Tamela Holdings, a black-owned and managed investment, corporate finance advisory and fund management company, was founded by Mahlangu and Mhlarhi in 2008.

The Tamela Mezz Fund aims to finance mid-market companies who wish to grow their businesses, enter new markets and accelerate growth through expanding operations or consummating strategic acquisitions.

The Fund expects to provide capital ranging from R50m to R150m per investee company.

The Tamela Mezz Fund will partner with entrepreneurs, providing them with financing options and necessary strategic support to better enable them to contribute to economic growth and job creation.

“Although the Tamela Mezz Fund will predominantly invest in South Africa, up to 20% of the capital may be invested in Botswana and the Common Monetary Area countries,” said Mahlangu.

We have a healthy pipeline of transactions that are currently at various stages of evaluation,” he added.