ASHBURTON MEZZANINE
FirstRand launches fund to target debt
FirstRand’s Ashburton Investments is starting a new debt-instrument investment fund as Africa’s biggest bank by value seeks to take advantage of lending gaps and opportunities in the south of the continent. The Ashburton Mezzanine Fund raised more than R500m ($40m) in its first round and was targeting R1bn before closing to investors within the next 12 months, money manager Ashley Benatar said in an e-mail. The fund plans to target mezzanine debt, a hybrid between debt and equity financing. This is a riskier type of debt, as it does not generally require collateral and ranks behind senior debt in the case of a company defaulting. In such a case, mezzanine funders can convert their debt into equity.
The Ashburton fund plans to invest in opportunities in SA, with about 20% allocated to Botswana, Namibia and Zambia, said Benatar. The fund will target investments of between R75m and R150m and will be "sector agnostic", said Benatar. Mezzanine debt offered investors a "compelling" ...
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