Makalani was established in 2005 to be a financial empowerment and business capital focal point. One of Makalanis early and initial engagements was to manage the R2.5 billion mezzanine asset portfolio. These initial activities included deal origination, mezzanine and debt restructuring as well as portfolio management.
Mezzanine finance has proven over the years to be the ideal financing solution in circumstances where companies and shareholders are considering raising capital without being subjected to the restrictions of more traditional finance or equity solutions. Mezzanine finance is therefore a hybrid of debt and equity financing which is used to finance the expansion of existing companies. This type of finance gives the lender the rights to convert to equity interest in the company if the loan is not paid back in time and in full.
Mezzanine finance provides great benefits to business firms by assisting in avoiding of significant equity dilution which accompanies traditional private equity deal structures, avoiding potentially disruptive shareholder disputes, assisting new BEE participants in obtaining equity ownership in established businesses, providing the funding required for the buy-out of a business currently run by a management team or assisting managers in buying into new business ventures and by a large extent helping managers expand their existing businesses by providing expansionary capital which can also be used to fund the purchasing of businesses which complement the existing operations.
Business houses can therefore depend on Makalani for funding opportunities. Makalani can be contacted on 0114280680.