Kholo Capital backs DCC with R275m debt deal

Investment firm Kholo Capital has secured a R275 million debt arrangement with South African ICT distributor DCC Holdings to refinance current obligations and fuel long-term growth. The funding, equivalent to approximately $17 million, was disclosed by Kholo Capital Mezzanine Debt Fund I.

DCC offers technology products and solutions across Southern Africa, encompassing personal computing, printing, enterprise infrastructure, and software. The company's product lineup includes offerings from global technology giants HP, Dell, and Lenovo, which it supplies to resellers, system integrators, and retailers via its distribution network. Established in 1988, DCC has a strong presence in the Southern African ICT distribution sector, backed by private equity investor Kleoss Capital.

Kholo Capital managing partner and co-founder, Mokgome Mogoba, stated that the funding will enable DCC to optimize its capital structure and provide financial flexibility for future expansion. Mogoba expressed delight in supporting DCC's seasoned management team as the business transitions into its next growth phase.

Citing DCC's distribution network, logistics capabilities, and established relationships with global technology manufacturers, Kholo Capital managing partners Zaheer Cassim and Hale Matsipa highlighted the company's potential to capitalize on opportunities within the regional ICT market. Cassim also commended DCC's commitment to youth employment, support for learners with disabilities, SME reseller development, and its adoption of sustainable practices such as solar energy and water-saving measures.

Kleoss Capital managing partner Carlos Ferreira noted that the transaction signifies momentum in South Africa's private markets and the successful collaboration between private equity and private debt investors. Ferreira added that DCC's shareholders, comprising senior management and Kleoss Capital, are pleased to welcome Kholo Capital into the capital structure of the DCC group.