Jaltech Launches Spin-Off Fund Following Successful Section 12J Era

Jaltech, a South African alternative investment manager, has launched the Jaltech Income Opportunities Fund ("Jaltech IOF"), whose mandate closely mirrors Jaltech's flagship Section 12J investment - the Infinity Anchor Fund, the market-leading Section 12J investment within its class.

Jaltech IOF will provide retail investors with access to a niche segment of the South African private debt market. Jonty Sacks, a partner at Jaltech, states:

"Jaltech IOF follows on from Infinity Anchor Fund's focus of targeting healthy South African businesses that need R20 million to R80 million of funding but that don't meet the cookie cutter requirements of local banks when it comes to debt funding of this size. These companies have impressive profit margins and track records, but the complexity of their business or the structure of the debt facility required is something that banks will only offer to borrowers looking for R200m or more.

This niche focus has created an opportunity for Jaltech IOF to generate attractive interest-linked returns from companies that are excellent candidates for structured debt."

From a portfolio perspective, Jaltech IOF will have the option to selectively acquire high-yielding investments from Jaltech's existing Section 12J portfolio. The current focus is five investments valued at more than R145 million, which have achieved an average annual return of above 18% over a number of years. This presents an opportunity for the fund to gain immediate exposure to a known, seasoned portfolio of income-generating assets.

Jaltech IOF offers investors a preference dividend yield and upside in the growth of the portfolio, expected to generate returns of between 12% and 14% p.a. (post-tax and net of fees).

Webinar

Jaltech will be hosting a series of webinars for the investment - an opportunity to hear directly from the Jaltech team, ask questions, and gain a deeper understanding of the investment.

To register, click here.