Makalani, founded in 2005, is a inter-disciplinary investment manager that is focused exclusively on investment research and portfolio management. The firm operates independently and is wholly owned by its partners – all of whom work within the firm.
At inception, the firm focused on the management of an unlisted, alternative investment funds, with other strategies selectively added as like-minded and accomplished talent were identified to meet broad market themes.
Their investment management teams have operated over many market cycles, across traditional and alternative asset classes, domestically and internationally, and remain focused on investment performance and value-added services for clientele. The firms clients include institutional investors such as insurance companies, government, and corporate pension funds, banks, trade unions and family offices. They also have experience with working with global investment consulting firms.
Mezzanine Fund I
Mezzanine Fund I (Makalani Holdings Limited) was incorporated in 2005 as a public company after raising R2.5 billion of capital from institutional and private investors for investment. The investment strategy focused on the funding of Black Economic Empowerment (BEE) transactions, and other targeted investments. The investment focus was primarily in mezzanine funding instruments, senior loans, and equity investments.
Mezzanine Fund II
Makalani is in the process of raising investment capital for a second mezzanine fund (Fund II) which is a follow-on vehicle to Mezzanine Fund I (Makalani Holdings Limited). Fund II held its first close receiving commitments from some of the largest institutional investors in Southern Africa.
Fund II is expected to follow a similar investment strategy to its predecessor fund, and will consider investments with the following criteria:
Participation in refinancing opportunities in existing (BEE) and mezzanine structures, especially in circumstances where traditional lenders (banks) may be constrained in providing mezzanine finance because of regulatory restrictions.
Funding existing BEE participants
Provide funding to existing BEE participants which demonstrate significant net asset value but lack the funding to take advantage of further opportunities available to them. This funding could also be used to facilitate the exit of the traditional non-BEE investors who provided initial development finance to BEE participants.
Facilitate consolidation opportunities through providing BEE players with access to finance, which enables them to acquire BEE assets from other existing BEE participants in existing structures.
Primary BEE and Mezzanine Opportunities
Provide funding in traditional primary BEE and mezzanine opportunities, Enterprise Growth and Expansion, Provide mezzanine funding for enterprise growth and expansion.
Fixed income investments have an essential role in being part of an institutional investment portfolio. However, investors are not faced with an environment where traditional sources of high quality fixed income (such as government bonds), offer low income and may grapple to keep pace with inflation. This, coupled with ongoing economic uncertainty and increased market resilience, and accounting, actuarial and regulatory pressures, will present investors with substantial challenges when making fixed income investments.
In light of this, Makalani has developed a distinctive, collegiate process in managing fixed income portfolios using their extensive experience of investment worldwide of available fixed income instruments, both domestically and internationally, and across all stages of the fixed income cycle.
The company also provides operational, accounting and legal expertise and supports a variety of back office and business support functions as part of their fiduciary management services.
The team has, since 2001, provided fiduciary management and custom solutions for institutional investors worldwide. Solutions have ranged from global, diversified portfolios to more specialised co-investments and direct investments for traditional and alternative asset classes.
Some of these strategies include:
- Listed market securities and thematic portfolios;
- Hedge funds;
- Private equity;
- Commodity and energy assets;
- Fixed income and alternative credit strategies;
- Real assets (including timberland and farmland investing);
- Insurance linked securities;
- Investment mandates that are socially responsible; and
- Real estate.
Financial Advisory Services
Makalani’s Financial Advisory Services provides transformative strategic, tactical advice and unparalleled execution to financial sponsors, public and private companies across numerous industry sectors and geographies. As a leading independent firm, the company serves as a trusted advocate to clients across numerous disciplines including:
- Corporate finance;
- Mergers and acquisitions;
- Strategic shareholder and BBBEE advisory;
- Capital markets and debt advisory;
- Africa market intelligence and consultation;
- Derivative structuring and hedging;
- Transaction advisory services;
- Financial restructures;
- Independent valuations and reporting;
- Strategic consultations; and
- Real estate valuation and advisory services.
For more information and assistance – Contact DTC