TechInAfrica – A South Africa-based fund management company, Vantage Capital, has invested €8 million Mezzanine fund in a Moroccan tech funding company, Equity Invest S.A. Furthermore, the investment will be used to strengthen Equity Invest’s position in the Moroccan market.
Vantage Capital specializes in offering hybrid debt and equity funds for startups using a financing system called Mezzanine capital. The Mezzanine fund enables lenders to convert to an equity interest owner in case of default on the part of the funded company.
The €8 million of funding allows Vantage Capital’s founder, Ali Bettahi to have control over an equity stake in one of six Moroccan tech companies. The six tech companies offer:
- Electronic security solutions: anti-intrusion systems, access control, video surveillance, fire detection, RFID, and bank security
- Audio-visual multimedia systems
- Photovoltaic solutions for companies in the sectors of industry, services, and agriculture
- Payment solutions including online credit payments, cash payments, and prepaid card service
- E-health information systems for health professionals who work in hospitals and laboratories
Commenting on the investment, Equity Invest’s Founder, Ali Bettahi said: “Vantage has adopted a pragmatic, solutions-based approach to working with us and we appreciate their diligence, efficiency, and professionalism. We welcome Vantage as our newest funding partner and look forward to building a mutually beneficial relationship over the years to come.”
Speaking on their part, Managing Partner at Vantage Capital, Luc Albinski said: “Vantage is proud to have concluded its first investment in Morocco. Vantage’s mezzanine product has once again proved its value by supporting an entrepreneur to reacquire a controlling stake in one of his businesses whilst at the same time facilitating an attractive exit for the private equity investor.”