One of the largest mezzanine fund managers, Vantage Capital, today announced that it has provided R356 million ($28 million) of funding to over 30 Servest managers. 

The funding is expected to be used to increase management's shareholding in the company as part of the recently-announced Kagiso Tiso Holdings (KTH) buyout of the business.

Associate Partner at Vantage Capital, Johnny Jones said revealed that the investment highlights the unique benefits of mezzanine funding, which allows management shareholders to use funding to increase their equity participation.

"This type of transaction is at the heart of our firm's investment strategy of supporting strong management teams of Pan-African businesses.

"The founder and Chairman of Servest, Kenton Fine added: "The Servest management team sought a capable and strong funding partner to support the robust growth momentum that the group has enjoyed thus far.

"Vantage was selected due to its speed of execution, innovative and flexible approach, as well as its alignment with the vision of management and KTH."