Transaction Advisory

About

Jaltech is a boutique financial consulting firm. One of our main focuses is to offer clients specialist-structured finance, corporate finance and general transactional advisory services throughout Africa.

Our key strength is our fresh approach to raising and structuring finance on the African continent. This, coupled with building up local knowledge and strong relationships with domestic stakeholders, ensures that service to our clients flows from accurate, up-to-date, and on the ground experience.

Fresh Approach

What separates us from our competitors is our fresh approach to raising finance.

We raise finance locally

One of our key strengths in raising finance in Africa, stems from our intrinsic understanding of the local financial markets.

Our strategy is to use our local knowledge to raise a percentage of the necessary finance in-country. We achieve this by focusing initially on financial institutions which have a legislative requirement to invest a portion of their funds (this can range between 30%-100% of funds under management) into local transactions and investments. These local institutions include pension funds, insurance companies, banks and development institutions.

Comprising predominantly of actuaries who have extensive experience in the pension fund and insurance sectors in Africa, we are able to explore possible funding structures, which suit these institutions membership and/ or client base profile and asset/ liability ratios.

From our past experiences, we have seen enormous additional benefits flowing from raising finance from local institutions. In particular, local finance:

  • Reduces the perceived risk of the transaction for international investors, as local investors have committed to the transaction
  • Increases foreign interest into a transaction
  • In most cases, reduces the cost of PRI (political risk insurance) cover
  • Generally reduces the currency risk for the transaction; and
  • Provides local institutions with the opportunity to invest in higher yielding investments relative to their current portfolio holdings (which is generally heavily weighted towards cash).

By way of illustration, our firm has executed mandates in Swaziland, Botswana, Ethiopia and most recently in Zimbabwe where local financial institutions have participated in our transactions.

Once the aforementioned financial institutions have been engaged, our approach would be to source further finance from the international market.

Local presence

Another major strength, that separates us from our competitors, lies in the fact that we conduct our services in-country, working directly with stakeholders on the ground rather than by ‘remote control’ from head office.

This approach, coupled with our local knowledge and networks, ensures a smooth flow of communication which ultimately speeds up transactions on our clients’ behalf.

Recent successful transactions by our teams on the continent bears witness to the success of this approach.

Risk mitigation and insurance

Our approach to raising finance on the African continent has generally resulted in our clients benefiting from discounted insurance premiums on political risk insurance or full commercial risk cover. This is due to the insurers’ understanding of the political hedge that local finance brings to a transaction.

Highly skilled

Our financial consultants are made up of actuaries and chartered accountants who are highly skilled, experienced and knowledgeable in structuring transactions on the continent, particularly where an out-of-the-box approach is required.

By way of illustration, our firm has closed transactions where debt, mezzanine and equity finance, as well as preference share solutions, were brought together from investors from multiple jurisdictions, in various currencies and where several layers of security were required to bring the transaction to financial close.

Reliable and non-conflicted

Being a boutique firm, we offer our clients dedicated and committed resources that give their transaction the highest priority. This, coupled with the expertise and experience of our consultants, ensures that our clients are in safe, reliable hands throughout our mandate.

As a policy, we do not have any partnerships with financial institutions that invest into our transactions. This ensures that our clients have the peace of mind that we structure transactions to their benefit, with no ulterior motives and at the most favourable structure and pricing possible.

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

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