Kholo and Maia Capital Inject R250M into Catapult Group to Drive Strategic Growth

The investment will be used to fund growth capital expenditure, refinance existing senior debt, and enhance cash flow flexibility—strategically positioning Catapult for its next phase of expansion.

In a major development within South Africa’s building materials sector, Kholo Capital Mezzanine Debt Fund I (Kholo Capital) and Maia Capital Partners (Maia Capital) have announced a R250 million mezzanine debt investment into the Catapult Group, a leading manufacturer and distributor of specialized building products.

The investment will be used to fund growth capital expenditure, refinance existing senior debt, and enhance cash flow flexibility—strategically positioning Catapult for its next phase of expansion. The transaction also underscores the growing role of private capital in supporting real economy businesses that contribute to industrial development and job creation.

Catapult Group: Anchored in Innovation and Market Leadership

Catapult has emerged as a key player in South Africa’s commercial, industrial, and residential real estate supply chains, with an extensive footprint that includes distribution across more than 3,000 retail stores nationwide. The company has cemented its position through strategic acquisitions and product innovation, particularly in sectors focused on sustainable and high-performance building materials.

Among its standout acquisitions are:

• Everite, renowned for its Nutec range—a proprietary line of fibre cement products that includes ceilings, cladding, slates, roofing boards, facades, cornices, and AAC bricks. Nutec products are well-regarded for their durability, thermal performance, and low environmental impact.

• Swartland, a top-tier brand manufacturing wood and aluminium window frames, garage doors, XPS insulation, and decorative finishes. The company’s reputation for quality and aesthetics has made it a mainstay in both high-end and affordable housing developments.

Together, these brands have given Catapult dominant market share in key segments and a resilient platform for growth across the broader construction and housing industries.

Strategic Partners Signal Confidence in Growth and Impact

The mezzanine financing, structured by Kholo Capital and Maia Capital, will provide a hybrid funding solution that blends equity-like upside with debt-like security, allowing Catapult to scale without diluting existing equity holders.

Zaheer Cassim, Managing Partner and Founder at Kholo Capital, said:

“Our R250 million investment will assist the Catapult Group with its growth objectives and provide additional financial flexibility which positions the company for sustained growth and further value creation. This growth will in turn create new jobs over the investment period, which is a key focus of the Kholo Capital investment mandate.”

Mokgome Mogoba, also a Managing Partner and Founder at Kholo Capital, added:

“Catapult is supported by a strong management team and established equity sponsors with solid net asset bases and extensive industry expertise. The business has consistently delivered strong earnings performance, supported by long-established brands, highly recognizable building products, and a dominant market share in its key segments.”

Kholo Capital focuses on impactful investments in South African businesses poised for expansion, especially those aligned with infrastructure, housing, and employment generation.

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A Dual Focus on Returns and Social Impact

For Maia Capital, the investment is not only a financial opportunity but a chance to contribute to one of its core impact themes: access to affordable, quality housing.

Tshandu Ramusetheli, CEO of Maia Capital, stated:

“By supporting Catapult, we are taking meaningful steps to ensure that all individuals have access to essential housing and services. This partnership exemplifies our belief that impactful investments can drive both economic growth and social progress.”

Maia Capital specializes in investments that bridge the gap between commercial performance and developmental outcomes, particularly in underinvested sectors that have high potential for systemic impact.

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Catapult’s Vision for the Future

Robin Vela, Chairman of Catapult Group, welcomed the support from the two capital partners, noting that the injection of capital will enable the company to accelerate strategic initiatives, scale operations, and enhance value for stakeholders.

“The support from Kholo Capital and Maia Capital will enhance our ability to deliver long-term value to our customers, employees, and shareholders. Importantly, the investment will also facilitate job creation and contribute positively to the broader South African economy, an outcome we are deeply committed to.”

He further emphasized Catapult’s commitment to inclusive growth, local manufacturing, and green building solutions, all of which are priorities as South Africa continues to navigate both a housing backlog and infrastructure development agenda.

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A Catalyst for Industrial and Housing Growth in South Africa

This transaction signals renewed confidence in South Africa’s real economy and highlights the critical role of mezzanine financing as a tool for growth-stage companies seeking capital without sacrificing control. With construction and building materials central to post-pandemic recovery, especially in affordable housing, Catapult’s expanded capabilities are expected to support infrastructure rollouts, public-private housing projects, and urban redevelopment initiatives.

By focusing on job creation, skills development, and local supply chain integration, Catapult’s expansion could serve as a blueprint for how industrial players can scale responsibly while contributing to national development goals.