Verdant Capital closes four private equity-related transactions in South Africa

Verdant Capital has acted as sole international arranger and advisor for Retail Capital. (Image source: Verdant Capital)

Verdant Capital has closed four private equity-related transactions in South Africa with important fund raisings for Bridge Taxi Finance and Retail Capital, the sale of Nedan Oil and the sale of Baxi to MFS Africa

Verdant Capital has raised approximately US$20mn in debt financing for Bridge Taxi Finance from a small group of leading international impact investors. The funding will be used to grow the institution’s lease portfolio. In addition, Verdant Capital has raised approximately US$10mn in debt funding for Retail Capital, a leading technology-enabled SME-financer. 

Bridge Taxi Finance, based in South Africa, provides affordable credit facilities to South African driver-entrepreneurs in the minibus taxi industry. It has a vertically integrated business model that includes impact vehicle finance, day to day tracking, advice and management, and vehicle repairs and services. The company has financed over 3,200 entrepreneurs to date (1,100 in FY2021 alone). 

Retail Capital is the first and largest Merchant Cash Advance provider in the South African SME market. It continues to make strategic partnerships by working with fintech companies to fast-track the financial inclusion of SMEs. In its growth, Retail Capital has been supported by shareholders from among the leading private equity firms investing in Africa, APIS, Crossfin and Future Growth. 

The successful raise is the third transaction for which Verdant Capital has acted as sole international arranger and advisor for Retail Capital. This transaction and the capital raise for Bridge Taxi Finance reinforces Verdant Capital’s position as the leading advisor to Inclusive Financial Institutions in Africa

Also contributing to innovation and disruption to the financial services sector, Verdant Capital advised leading super-agent in Nigeria to MFS Africa, a leading South Africa-headquartered pan-African payments business and a portfolio company of Lun Partners, Goodwell and Equator Capital. 

Verdant Capital expects an increase in transactions in the agri-business and food sector over the next 24 months, driven by fundamental demand drivers as well the number of private equity investments from the last decade which are now reaching maturity.  The successful mandate is Verdant Capital’s fourth successful transaction in the sector in the last 18 months and the firm is currently engaged on other transactions in the sector. 

The completed transactions, reinforce Verdant Capital’s position as a leading advisor to the private equity sector in Africa.

For more information, visit: