Vantage Capital, a South African-based mezzanine debt provider, has received commitments of $60 million from five European investors to finance its investment in a number of African countries through its third fund.

As a mezzanine debt provider, Vantage Capital gives a less riskier form of capital financing that combines both debt and equity thereby providing companies with long-term funds that don’t dilute their shareholding structure.

German-based DEG has committed $20 million of the financing, with four other unspecified European financiers providing the rest.

“We believe in the mezzanine asset class in Africa and see it as an important instrument to facilitate economic growth,” Gunnar Stork, DEG’s director equity & mezzanine for Africa and Latin America, said in a statement.

In addition to its home market in South Africa, Vantage is targeting debt opportunities in several high-growth African countries including Kenya, Ghana, Nigeria, Ethiopia, Tanzania, Uganda, Zambia, Botswana and Namibia.

Vantage has already invested 90 percent of its second mezzanine fund in 12 projects, particularly into growth projects such as Surfline in Ghana.

The debt firm said it is targeting a final close of its third mezzanine fund at approximately $250 million later this year.