Individual investors can now access a part of the South African private debt market that has typically belonged to the banks and the large financial institutions. The Jaltech Income Opportunities Fund ("Jaltech IOF") is focused on offering debt facilities to established South African companies and targets a return to investors of 12% to 14% a year, post-tax and net of fees.
The fund provides medium-term debt facilities of R20 million to R80 million to established South African companies, businesses with revenue above R50 million, EBITDA above R5 million, a track record and adequate security. Investor returns are generated from interest income on those facilities, plus a share of the growth in the portfolio's value.
The fund at a glance
Target return: 12% to 14% p.a. (post-tax and net of fees)
Preference dividend yield: 8% p.a. (pre-tax and net of fees)
Upside: a year-five lump sum equal to 30% of the growth in the fund's value
Downside protection: first-loss protection absorbs the first 40% of portfolio losses before investor capital is affected
Term: 5 years, with an early-exit option on 6 months' written notice, subject to conditions
Fundraising closing date: 31 July 2026
A portfolio from day one
Most new debt funds start with cash and a blank portfolio. Jaltech IOF has the option to acquire high-yielding investments from Jaltech's existing Section 12J portfolio. The portfolio, if acquired, is made up of five transactions valued at over R145 million and has generated a return to date of more than 18% a year over several years, with zero impairments. This removes much of the deployment risk and cash drag a new fund would carry.
What investors earn (per R1 000 000 invested, pre-tax and net of fees unless stated)
Jaltech IOF vs the market (base case, post-tax and net of fees)
A further advantage is tax: Jaltech IOF annual distributions are taxed as dividends at 20%, rather than as income at rates of up to 45%, so investors keep more of what they earn.
Fundraising closing date: 31 July 2026.
Have questions about the fund? We're hosting a live Meet the Manager & Q&A webinar - a chance to meet the team running the Jaltech IOF, get a clear walk-through of the investment, and ask whatever you'd like answered, ahead of the 31 July 2026 closing date.
Register here to join us live.
Can't attend? Register anyway, and we'll send you the recording.
For the full brochure, contact Chris McCormick at chrismc@jaltech.co.za
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