South African information and communications technology (ICT) products and solutions distributor DCC Holdings has secured R275-million in mezzanine debt funding from Kholo Capital Mezzanine Debt Fund I.

As DCC enters its next phase of growth, the funding will refinance existing debt and support the company’s long-term growth strategy.

“DCC’s shareholders, comprising senior management and Kleoss Capital, are pleased to introduce Kholo Capital into the capital structure of the DCC group. Together with our capital partners, we look forward to the next chapter in the evolution of the business with continued optimism,” said DCC CEO Carlos Ferreira.

DCC has been growing steadily over the years with the addition of certain key brands and the expansion of its existing footprint within its established vendor relationships.

“The business is backed by Kleoss Capital, a highly competent private equity investor. This transaction demonstrates how structured mezzanine debt capital can be used to optimise a company’s capital structure, refinance existing debt and provide the financial flexibility required to support sustainable growth,” said Kholo Capital managing partner and co-founder Mokgome Mogoba.

“DCC has established itself as one of South Africa’s leading ICT distributors, with a strong market position underpinned by longstanding relationships with leading global technology manufacturers, an extensive reseller network and well-established logistics and distribution capabilities.”

Kholo Capital co-founder and managing partner Zaheer Cassim added that for nearly four decades, DCC built a formidable distribution platform, combining extensive market reach, strong logistics capabilities and a deep understanding of its channel partners’ needs.

Beyond its commercial strengths, DCC’s investment in youth employment, support for learners with disabilities and small and medium-sized enterprise reseller development reflects a commitment to inclusive growth. Its adoption of solar energy and water-saving measures further demonstrates a practical approach to responsible business.

“We believe DCC is well positioned to capitalise on opportunities across the Southern African ICT market, and we are pleased to partner with management in advancing growth that delivers both commercial value and meaningful social impact.”

“Kleoss Capital has valued the opportunity to work with Kholo Capital on this transaction, which positions DCC for its next phase of growth. It also reflects the positive momentum in South Africa’s private markets and marks another successful collaboration between Kleoss Capital and a fellow private markets investor,” continued Kleoss managing partner Hale Matsipa.

“We look forward to continuing our partnership with the Kholo Capital team.”

Deneys acted as legal counsel to Kholo Capital, while Webber Wentzel acted as legal counsel to DCC.