Kholo Capital backs DCC Holdings with US$17M to expand printing distribution

SOUTH AFRICA – Kholo Capital Mezzanine Debt Fund I has provided R275 million (US$17 million) in mezzanine debt to DCC Holding, financing the South African ICT distributor’s refinancing while underpinning its printing hardware and supplies business across Southern Africa.

DCC distributes printing equipment, consumables and enterprise infrastructure from manufacturers including HP, Dell and Lenovo. 

Its portfolio spans personal computing, printing, enterprise infrastructure and software, serving resellers, system integrators and retailers. 

Printing hardware remains a major revenue line for South African ICT distributors, encompassing desktop printers, multifunction devices, commercial presses and the consumables that drive recurring income. 

Distributors must carry deep inventory across multiple brands and configurations, fund credit terms for resellers and provide technical support, all of which require working capital and stable balance sheets.

Mezzanine Debt Refinances Existing Obligations

The funding will refinance existing debt and support DCC’s long-term growth, Kholo Capital said on 13 October. 

Mezzanine debt sits between senior debt and equity in a company’s capital structure, typically carrying higher interest rates than senior loans in exchange for greater risk. 

For DCC, the arrangement provides flexible capital without diluting existing shareholders’ equity positions, allowing refinancing while preserving ownership distribution.

Private Equity Backing Structures Ownership

DCC is backed by private equity firm Kleoss Capital, which co-shareholds alongside senior management. 

Kholo Capital now joins the group’s capital structure. Mokgome Mogoba, managing partner and founder of Kholo Capital, said the deal showed how structured mezzanine debt capital could be used to optimise a company’s capital structure, refinance existing debt and provide the financial flexibility required to support sustainable growth.

Deal Signals Private Market Momentum

Hale Matsipa, managing partner at Kleoss, framed the transaction as a sign of positive momentum in South Africa’s private markets, pointing to growing collaboration between the country’s private markets investors. 

Founded in 1988, DCC operates in a printing market shifting toward subscription models and managed print services, where distributors increasingly bundle hardware, consumables and servicing into long-term contracts. 

Refinancing allows DCC to maintain inventory levels and extend credit terms to resellers without straining balance sheets, supporting its position as a channel partner for major printer manufacturers targeting Southern African businesses.

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