Kholo Capital Mezzanine Debt Fund I and Tensai Private Equity have jointly announced a R275 million (approximately $16.4 million) mezzanine debt facility to support the management buyout (MBO) of Isambane Mining, a mid-tier mining contractor operating in South Africa.
Isambane Mining provides a full suite of opencast mining services, including drilling, blasting, loading, hauling, rehabilitation and day-work solutions to major mining clients.
The funding package consists of R200 million from Kholo Capital and R75 million from Tensai Private Equity, reflecting a collaborative approach to enabling management-led ownership transitions.
The buyout is led by a management consortium headed by Chairman Banzi Giyose, Chief Executive Officer Johan Venter and Chief Financial Officer Jorrie Jordaan.
Zaheer Cassim, Managing Partner and Founder of Kholo Capital, highlighted the strategic value of the transaction, noting that mezzanine debt provides a flexible financing solution that allows management teams to assume ownership without excessive equity dilution.
“This transaction demonstrates how structured mezzanine debt can support management-led ownership transitions while maintaining operational momentum. Isambane has established a resilient and high-quality platform, supported by strong cash flows, scalable operations and long-standing relationships with tier-one mining clients,” Cassim said.
Mokgome Mogoba, also Managing Partner and Founder of Kholo Capital, emphasised the strength of Isambane’s contract portfolio and operating model.
“Isambane benefits from multi-year contracts with leading mining clients, providing strong revenue visibility. Its flexible operating structure allows for efficient redeployment of fleet and personnel, reducing utilisation risk. Importantly, this transaction advances transformation in the mining services sector, with Isambane now positioned as a majority black-owned and controlled company,” Mogoba stated.
He added that the deal reflects continued investor confidence in South Africa’s mining services industry, while also underscoring the growing role of mezzanine debt in facilitating ownership transitions and supporting sector growth.
