The NEF will provide funding of R5 million to R75 million to entities that are already black-empowered, but seek expansion capital to grow the business.
The key criteria of this product are:
- Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
- BEE shareholding should be minimum of 50.1%
- Pricing based on instrument, risk matrix, security package, etc.
- Typical investment horizon of 4 to 7 years
- Active BEE involvement in investee companies
- Security to include personal guarantee and security over business assets