Overview
Tamela Capital Partners is one of the few credit-oriented alternative asset managers in Sub-Saharan Africa, with a focus on delivering attractive risk-adjusted returns and capital preservation for our investors.
Our long term investment strategy seeks to maximise returns while simultaneously managing the downside risk of investments. Our team constitutes one of the most experienced teams within unlisted credit, having founded the first mezzanine credit manager in Africa in 2005. The team’s deep knowledge of unlisted credit and unlisted equity investing provides our clients access to an investment team with the most diversified knowledge within the alternative asset class.
Our ability to create partnerships with management teams enables us to provide appropriate funding solutions to corporates whilst ensuring we deliver the promised returns to our clients.
Our Approach
Investment Criteria
Mezzanine Investments
Our Team
Our Approach
Deep Industry Networks and Expertise
The investment team pioneered the mezzanine credit investing in South Africa in 2005 and has participated in several land mark transactions, either advising or investing. Our deep understanding on how to structure funding solutions means that we can size up situations quickly, understand funding opportunities and leverage our experience and our network to crystallise an opportunity.
Focus on Capital Protection
Our clients have low tolerance for capital loss, therefore the investment team spend a significant part of its time assessing risk and structuring downside protection. In addition, we believe that an ongoing involvement with the underlying investee companies provides us with an opportunity to stay ahead of the curve in order to understand and mitigate risks that may arise during the investment period.
Collaboration with Management Teams
The investment team takes a fundamental approach to value creation through partnerships with management teams and shareholders and by being actively involved with the strategic development of portfolio companies.
Turnaround and Structuring Flexibility
Our investment process enables us to respond quickly and with certainty to entrepreneurs and management teams seeking growth capital to crystallise studied opportunities. The investment team has a strong origination and execution capability of structuring mezzanine and equity transactions, which allows for identification and mining structured opportunities with advanced risk mitigation techniques.
Tamela Capital Partners ESG Report
Download our report for the year ended 31 December 2023
Investment Criteria
Investment Amount
• R50 – R200 million (larger amounts with co-investors)
Investment Types
• Growth capital, Entrepreneur-partnering transactions, Funding of buy-and-build transactions, BEE transactions, Refinancing of secondary BEE transactions and Energy transactions.
Investment Structures
• Subordinated debt, second lien
• Equity co-investment (on a limited basis)
Financial Metrics
• Revenue greater than R100 million
• EBITDA greater R30 million
Target Company Characteristics
• Proven value proposition
• Identified organic growth
• High free cash flow generation and cash conversion rates
• Experienced management with “skin” in the game.
Industry Focus
• Industrial/commercial services
• Distribution and logistics
• Niche manufacturing
• Tech-enabled services
• Healthcare
• Property
Geography
• Sub Saharan Africa
Mezzanine Investments
Crossgate
Crossgate is a payments solution business that provides leading card, mobile and processing platforms that connects merchants, banks, consumers and brands. The Tamela Mezzanine Fund provided funding to the management team to grow the business and to increase their shareholdings in Crossgate.
The Digs
The Digs is a purpose build student accommodation company servicing mostly students from the Stellenbosch University Health Science campus, situated in Tygerberg, Western Cape. The Tamela Mezzanine Fund provided funding to The Digs to grow its student portfolio.
Boodle
Boodle is a Johannesburg based microlender, offering loans of up to R8 000 repayable within 6 months. The Tamela Mezzanine Fund provided funding to Boodle to grow its book and repay certain short term debt.
Retail Capital
Retail Capital was founded in 2011. Retail Capital is the leading and the first Merchant Cash Advance (“MCA”) provider in the South African SME market. In 2018 Retail Capital acquired First Asset Finance, an asset leasing business which serves SMEs, with specific strengths in the medical segment.
Taurus Capital
Taurus Capital was established in 2016 as the provider of multi-disciplinary funding to law firms and their clients. Taurus Capital Finance Group is South Africa’s leading capital and finance solution provider to the legal fraternity and its clients. As experts in finance as well as the business of law, Taurus has built proprietary methodologies for assessing value inherent in a firm’s legal cases and/or court-orders.
KT Wash
KT Wash, based in Nigel, South Africa is a leading dry detergent manufacturer in South Africa with international standards of excellence and has been a major market player for over 10 years. KT Wash is currently expanding into the manufacture of liquid detergents.
Nurture Care Group
Nurture Care Group is a Port Elizabeth based healthcare organisation with interests in acute rehabilitation hospitals, sub-acute rehabilitation and medical facilities (Nurture Healthcare), as well as acute and sub-acute psychiatric facilities in South Africa.
KT Wash Liquids
KT Wash Liquids is an associated company to KT Wash. A contract manufacturer and packager of liquid detergent for various merchants, banks consumers and brands. The Fund provided financing to KT Wash Liquids to build the liquid detergent plant in Nigel.
Kiara Health is a pharmaceutical company, founded in 2016, licensed to manufacture, import and market pharmaceutical products in South Africa. The Fund provided financing to Kiara management to increase its shareholding to 100% and to grow its business.
