MAKALANI HOLDINGS LTD
Investment Company in Johannesburg

Mezzanine Finance is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies. Mezzanine finance is considered a useful financing solution when companies and/or their shareholders want to raise capital and not be subject to the restrictions of more traditional finance or equity solutions. Avoiding of significant equity dilution which accompanies traditional private equity deal structures\. Assisting new BEE participants in obtaining equity ownership in established businesses\. Providing the funding required for the buy-out of a business currently run by a management team or assisting managers in buying into a new business; and. Helping managers expand their existing business by providing expansionary capital that can also be used to fund the purchase of businesses which complement the existing operations and provide critical mass. Makalani’s management team consists of qualified investment professionals with a background in BEE and mezzanine financing. Using experience gained from Makalani Holdings and other successes within the BEE and mezzanine funding space, the management team is uniquely placed to capitalise on mezzanine investment opportunities arising in the South African market. He is an accomplished transactor with significant experience in the structuring and financing of BEE transactions. In 2010, Keshan led the successful R1.9 billion delisting of Makalani, affording shareholders the opportunity to exit their investment at a fair price, and further allowing management to realise the net asset value of the portfolio in the unlisted environment for the remaining shareholders. In addition to his role at Makalani, Keshan is the independent Chairman of Eastvaal Motor Holdings. He began his career as a legal advisor within the Structured Finance business where he was trained in structuring, implementation and risk management of tax based financing structures. He progressed into a transacting role within the Project Finance team focusing on mining and telecom transactions. Ahjeeth was fortunate to have been involved in some of the largest transactions in the mining and telecoms sectors at that time. Since 2005, Makalani has provided in excess of R2.5 billion of mezzanine funding for BEE transactions, including some of South Africa’s most notable and successful empowerment transactions. The Makalani team has the experience, expertise and track record to structure BEE and other mezzanine transactions in the ever changing South African corporate landscape.