Kholo Capital Lends R275M ($17M) in Mezzanine Debt to South Africa's DCC Holdings
The South African mezzanine debt manager deploys roughly 20% of its flagship fund to optimize the ICT distributor's balance sheet, refinance existing debt, and drive Southern African expansion.
JOHANNESBURG — South African private credit asset manager Kholo Capital has completed a R275 million ($17 million) mezzanine debt investment in ICT distribution group DCC Holdings Proprietary Limited (DCC Technologies) through its flagship Kholo Capital Mezzanine Debt Fund I.
The structured capital injection is designed to optimize DCC’s overall balance sheet, refinance existing debt obligations, and extend financial flexibility to accelerate its regional expansion across Southern Africa. DCC is backed by South African private equity firm Kleoss Capital.
Portfolio Deployment and ICT Distribution Footprint
Operating since 1988, DCC serves as an supply chain intermediary linking global hardware and software original equipment manufacturers (OEMs), including HP, Dell, and Lenovo, to an extensive network of resellers, system integrators, and retail channels across Southern Africa.
The transaction represents a deployment commitment for Kholo Capital Mezzanine Debt Fund I, which reached its final close at R1.4 billion ($80 million) in early 2025:
- Fund Deployment: The R275 million ticket represents nearly 20% of the total capital commitments of Kholo Capital Mezzanine Debt Fund I.
- Capital Structure Optimization: Provides subordinated, non-dilutive capital to lower near-term debt servicing strain without diluting Kleoss Capital or management equity holdings.
- Legal Advisory: Deneys acted as legal counsel to Kholo Capital, while Webber Wentzel advised DCC Holdings.
“DCC has a strong market position underpinned by longstanding relationships with leading global technology manufacturers, an extensive reseller network, and well-established logistics and distribution capabilities,” said Mokgome Mogoba, Founder & Managing Partner at Kholo Capital.
“This transaction demonstrates the power of flexible mezzanine debt to support established companies in optimizing their capital structures while executing long-term growth,” added Hale Matsipa, Managing Partner at Kleoss Capital. “It also reflects the positive momentum in South Africa's private markets and marks another successful collaboration between Kleoss Capital and a fellow private markets investor.”
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