Diversified Hospitality, Catering & Mining Group

The Situation

The client operated an integrated business spanning premium hospitality, catering services, and mining assets across Zimbabwe. Management sought long-term institutional capital to acquire three luxury hotels while simultaneously expanding mining operations through additional equipment, new mining assets, and production capacity.

Although hospitality expansion was the immediate priority, mining operations generated consistent cash flows. The financing objective was therefore to establish a structure that allowed both business divisions to expand together, with mining cash generation supporting hospitality growth over time.

Due Diligence & Structuring

Comprehensive due diligence, site inspections, and management meetings identified weaknesses within the group's treasury management, internal financial structure, and tax planning. Before any investment was offered, advisory support was provided to redesign these financial processes and improve governance standards.

Since direct lending into Zimbabwe presented structural challenges, the transaction was executed through a Mauritius holding company. Investment proceeds were managed through an escrow arrangement, allowing efficient cross-border capital deployment while strengthening investor protection and operational oversight.

Challenges & Solutions

• Collateral Enhancement
  Additional third-party security together with risk insurance was arranged to strengthen collateral coverage beyond the borrower's available assets.
• Enterprise Valuation
  Independent valuation specialists established a fair enterprise value, ensuring an objective investment structure and appropriate return profile for all stakeholders.
• Operational Expertise
  A lender-appointed board representative was introduced to provide financial oversight and strengthen governance within the mining division.

Key Transaction Terms