Vantage Capital, a South African-based fund management company, has invested €8million Mezzanine fund in Equity Invest S.A, a tech funding company based in Morocco. The fund will be used to reinforce the market position and growth of Equity Invest in Morocco.
Vantage Capital is a fund management company that offers hybrid debt and equity funds to startups. The company makes use of a financing system called Mezzanine capital to fund startups. Mezzanine financing gives lenders the right to convert to an equity interest owner in case of default on the part of the funded company.
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The €8 million was used to support 6 Moroccan tech companies that offer:
- Electronic security solutions including anti-intrusion systems, access control, video surveillance, fire detection, RFID and bank security
- Audio-visual multimedia systems
- Photovoltaic solutions for companies in the industrial, services and agricultural sectors
- Payment solutions like online credit card payments, cash payments, and prepaid card services, and
- E-health information systems for health professionals working in laboratories and hospitals
With the funding, Vantage Capital’s founder, Ali Bettahi, currently has the right to control an equity stake in one of the tech companies.
The Managing Partner Vantage Capital, Warren van der Merwe has applauded the funding stride embarked upon by Vantage. In a blog post shared on vantage’s website, Merwe noted that the fund will help prove the company’s value and support entrepreneurs to reacquire a controlling stake in one of his businesses and at the same time, facilitate an attractive exit for the private equity investor.
The 8 million Mezzanine fund is the 28th Mezzanine transactions across South Africa, Morocco, Côte d’Ivoire, Ghana, Nigeria, Uganda, Kenya, Mauritius, Namibia, and Botswana.
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