Section 12J Funds

Jaltech’s Venture Capital Company Advisory Services

Jaltech has developed a niche in the South African market in assisting companies, family offices and high net-worth individuals with forming Section 12J Venture Capital Companies (VCC) as well as administering and structuring all aspects of the VCC.

Jaltech’s extensive professional team comprising of actuaries, accountants, an attorney and a full time risk officer is well resourced to assist clients interested in forming a VCC or who already have a VCC and only require administration/structuring services.

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VCC structuring and formation services

Jaltech has developed an extensive suite of Section 12J compliant legal agreements, policy documents and processes, drafted and approved by leading law firms.  This means that Jaltech has the necessary legal framework in place, which will allow the VCC to:

  • have multiple share classes thereby permitting investors to ring fence their investments in the VCC; or/and
  • have exposure to a portfolio of investments.

The ideal structure will ensure that the VCC is able to achieve the client’s objectives whilst simultaneously maximising tax efficiency for the client and potential investors in the VCC.

Once the client selects the ideal structure, Jaltech will assist with preparing and submitting the VCC application to the Financial Services Conduct Authority (FSCA), the South African Revenue Services (SARS) and the Financial Intelligent Centre (FIC), for the registration of the VCC.

This process (depending on the relevant institutions listed above) can take anywhere between 60 to 90 days.

During the registration process, Jaltech’s team will prepare the necessary documentation in order to ensure that the VCC is compliant, these include (but are not limited to):

  • 21 operational registers and 9 policies required by the FSCA;
  • Treating Customers Fairly policy;
  • Standard Operating Procedures such as how to deal with record keeping, fit and proper requirements etc;
  • FAIS compliant forms necessary to accept investments, which include, agreements detailing the rights of the shareholders of the VCC etc.

VCC administration

Once the VCC has been registered and all the legal agreements have been finalised, Jaltech will provide the extensive array of VCC administration services required. These services include (but are not limited to) the following:

  • maintaining and updating the 21 operational registers and 9 policy documents;
  • appointing and maintaining a key individual with the necessary FSCA licence as required by the FSCA;
  • managing the VCC in accordance with the FSCA’s requirements;
  • liaising with the compliance officer of the VCC on a regular basis;
  • preparation of monthly management accounts for the VCC;
  • liaising with the VCC’s auditors and providing them with such information as they may require for the purposes of preparing the VCC’s annual financial statements;
  • issuing, management and delivery of share and tax certificates to the shareholders of the VCC;
  • providing the necessary reports on behalf of the VCC to SARS and the FSCA;
  • preparing and submitting PAYE, VAT and all other statutory returns required in respect of the VCC;
  • reporting to investors.

Investment screening services

In order to ensure that the VCC’s investments are compliant with the legislation, Jaltech plays a lead role in screening investment opportunities. Jaltech will advise the VCC on how to structure a transaction, so that it is compliant with legislation. This service includes:

  • structuring the potential investments in line with the VCC’s requirements;
  • assessing the financial viability of an investment which will include, developing a financial model for the potential investment;
  • understanding the likelihood of the investment achieving the return on investment required by the VCC’s investors;
  • in conjunction with legal counsel, ensuring the investment falls within the legalisation.
Unit 19,1 Melrose Blvd, Melrose Arch
Gaurav Nair  |  Director email: gaurav@jaltech.co.za
Derrick Hyde  |  Director email: derrick@jaltech.co.za
Jonty Sacks  |  Director email: jonty@jaltech.co.za

Are you looking
to know more
about
Section 12J?

Infinity Anchor Fund and Zimbali Capital will be hosting a joint presentation in Melrose Arch on the 25th, 26th and 27th of February from 18h00 to 19h00. The presentations will provide investors with an overview of the Section 12J investments. To attend the presentation, register below. Should you have any questions, contact info@infinityfm.co.za or call 011 880 0950. Kindly note, in order to qualify for the Section 12J deduction, the investment must be made before midnight of the 28th of February.

Infinity Anchor Fund was established to cater for investors seeking a lower risk investment, yielding an attractive and consistent semi-annual dividend return.

Zimbali Capital has been established to provide investors with returns based on high-quality property & hospitality assets across South Africa which are managed by Zimbali Asset Managers.

  • Strong investment profile with competitive returns targeted at 20% IRR p.a. (net fees & tax) including a 7% dividend yield paid semi-annually
  • Low fee structure of 2% per annum with no initial or performance fee
  • Large pipeline with the first R50 million to be invested within 3 months
  • Clear and effective exit strategy
  • Lower risk investment into asset-backed rental SMEs and similar businesses with contractual revenue streams
  • Accessible investment with a R100,000 minimum
  • Shariah-compliant
  • Targeted IRR of 18% p.a. (net fees and taxes)
  • Large pipeline of projects with the first R250 million to be invested by mid year
  • Lower risk investment into property backed hospitality investments
  • Clear and effective exit strategy
  • Low fee structure of 2% p.a. and 20% performance fee, based on any amount above the investor’s original investment
  • Minimum investment of R1 million

28 FEBRUARY DEADLINE

Investment Highlights

Investment Highlights