Jaltech has announced the successful exit of its 2020 Section 12J fund, delivering an impressive 15% return to investors, net of taxes, fees, and inclusive of the original tax deduction.
Reflecting on the five-year journey, Gaurav Nair, co-founder of Jaltech and head of fund management, commented:
“The past few years have tested even the most consistent fund managers, especially during Covid. But by sticking to first principles, applying disciplined asset selection, and backing exceptional businesses, we delivered what we set out to achieve.”
Jaltech’s return outperformed comparable Section 12J investments by as much as 40%, setting a high bar for competing fund managers. Gaurav added that “Our success was driven by quality investments, tight cashflow management, and performance-aligned fees that excluded the tax deduction, ensuring we only benefited when investors did.”
With Section 12J now phased out, Jaltech has shifted its focus to Section 12B solar investments, another government-backed tax incentive. Similar to Section 12J, it offers investors a significant upfront tax deduction while supporting the expansion of renewable energy in South Africa.
Jaltech has raised and deployed nearly R1 billion under the Section 12B incentive and has used the capital to fund over 250 solar projects in South Africa.
Jaltech’s next Section 12B investment will launch later this year. To be among the first to access this opportunity, register your interest here.