OUR STORY
Jaltech is an alternative investment fund manager that has developed a strong reputation in the South African market as a Section 12J investment specialist. With over R1.1 billion under management, Section 12J investments brought to market by Jaltech have deployed more than 75% of funds invested. These Section 12J investments are amongst the top performing in the market, within their respective classes.
R1.1 Billion+
AUM
500+
Active investors
Track record of deploying
100% of capital¹
Approved by major financial
institutions
OUR FUNDS
BACKGROUND
Infinity Anchor Fund is the top performing Section 12J investment in 2019 and 2020. Infinity Anchor Fund invests into a portfolio of asset backed businesses which earn rental income from the leasing of movable assets such as fibre infrastructure, technology, equipment, machinery, vehicles etc. Investing in businesses which collect contractual cash flows, has allowed Infinity Anchor Fund to target a 6-monthly dividend payment to investors.
PERFORMANCE
Infinity Anchor Fund is one of the top performing Section 12J investments in the market, having distributed two dividends during 2019 and 2020 and is projected to return 15.96% per annum on net² capital over the 5-year period.
EXIT
Infinity Anchor Fund’s investment strategy caters for a smooth and realistic exit after the 5-year investment term. This is achieved by investing equity funding into businesses which are asset underpinned as these businesses are typically:
- well positioned to dispose of a portion of their asset rental contracts to banking institutions in order to raise capital to purchase Infinity Anchor Fund’s shareholding;
- in a position to return capital during the 5-year investment term, which in turn will assist exiting investors timeously;
- amenable to pre-negotiate an exit mechanism.
INVESTMENT HIGHLIGHTS
- Top performing Section 12J investment in 2019 and 2020
- 2019 – Gross dividend yield. 4.94% per annum after fees and taxes
- 2019 – Net yield 9.98% per annum²
- 2019 – Gross return on capital 5.78% per annum
- Tracking an IRR of 15.96% per annum² after fees and taxes
- 6-monthly dividend payments achieved during 2019 and 2020
- 100% of capital invested as at 28 Feb 2020
- Performance fee charged on growth of investment only
- Minimum investment R200 000
- Term: 5 to 7 years
NOTABLE INVESTMENTS
SECUTECH
Secutech is a provider of security related technology. The technology is often rented out as a
package (for example, cameras and offsite monitoring equipment) to security companies.
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RISE TELECOMS INFRASTRUCTURE
Rise Telecoms in partnership with its holding company, provides access to fast, unlimited data internet services to tenants in high rise buildings. Rise Telecoms offers an alternative to fibre installations through the provision of Wi-Fi access points to its customers.
| SECUTECH | RISE TELECOMS | |
| Capital committed | R16 600 000 | R21 250 000 |
| Initial date of investment | March 2019 | June 2020 |
| Achieving an IRR | 9.73% (excluding the tax benefit) | 9.45% (excluding the tax benefit) |
MARKET COMPARISON
| INDICATORS | INFINITY ANCHOR FUND | LARGEST COMPETITOR |
| Gross dividend yield (2019) | 4.94% | 1.8% |
| Tracking IRR² after fees and taxes | 15.96% | 10.80% |
| Growth in NAV (excl. dividend) |  |
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| Gross performance fee | |
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| 100% of capital invested pre-Feb 2020 | |
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| Dividend paid out of profits only & not capital invested |
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| R200 000 minimum investment | |
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| Publicly reports performance | |
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¹ Prior to February 2020, investments brought to market by Jaltech had deployed 100% of capital under management.
² The returns are calculated based on the investor’s net investment amount and assumes the investor is in the highest marginal tax bracket.
BACKGROUND
Zimbali Capital provides investors with returns based on high-quality property hospitality assets across South Africa which are managed by Zimbali Asset Managers. Zimbali Capital aims to achieve moderate returns and investments are underpinned by an exit guarantee at a price which provides the expected rates of return.²
PERFORMANCE
Zimbali Capital is one of the top performing hospitality Section 12J investments in the market, having paid out a maiden dividend following its 2019 performance and achieved a gross return of 4.10% per annum¹.
EXIT
Zimbali Capital’s exit strategy is underpinned by guarantees in the underlying investments whereby the first 50% of underlying investments have a pre-determined exit mechanism at a pre-negotiated price². In order to assist with the disposal process, the majority of property held will be:
- sectional titled, thus allowing Zimbali Capital the flexibility of disposing of an entire building or sections thereof;
- functional as residential residence, thereby increasing the size of the re-sale market;
- located in up market property locations.
INVESTMENT HIGHLIGHTS
- 2019 – Return on gross capital – 4.10%
- Tracking an IRR of 14.6% per annum¹ after fees and taxes
- 100% of capital invested as at 28 Feb 2020
- Minimum investment R200 000
- Term: 5 to 7 years
NOTABLE INVESTMENTS
LA REZ
La Rez is student accommodation situated within walking distance from Stellenbosch University, sporting facilities, and other amenities. Given its location, La Rez is a popular student accommodation facility, providing an environment that is secure with upmarket living conditions. From an occupancy perspective, La Rez has achieved 100% occupancy for many years.
DE ZALZE LODGE
De Zalze Lodge is a Cape Dutch style guest lodge overlooking the lush vineyards and breathtaking Stellenbosch mountains. Nestled against the first fairway of the De Zalze Golf Course, this luxurious four-star establishment provides relaxed yet pristine accommodation with an array of leisurely pastimes guaranteed to unwind the stresses of modern day living.
| DE ZALZE LODGE | LA REZ | |
| Capital committed | R12 000 000 | R9 600 000 |
| Initial date of investment | August 2020 | September 2019 |
| Achieving an IRR | Recent investment | 9.52%³ (excluding the tax benefit) |
MARKET COMPARISON
| INDICATORS | ZIMBALI CAPITAL |
LARGEST COMPETITOR | |
| STUDENT ACCOMMODATION | HOSPITALITY | ||
| Gross dividend yield (2019) | 4.1% | 2.4% | 0% |
| Tracking IRR¹ after fees and taxes | 14.6% | 9.8% | 9.5% |
| Guaranteed exit and returns² | |
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| Growth in NAV (excl. dividend) | |
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| Gross performance fee | |
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| 100% of capital invested pre-Feb 2020 | |
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| Dividend paid out of profits only & not capital invested |
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| R200 000 minimum investment | |
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| Publicly reports performance | |
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¹ The returns are calculated based on an individual investor’s net investment amount and assumes the investor is in the highest marginal tax bracket and assumes a property growth of 4.5% p.a.
² Underlying investments are underpinned by exit guarantees ensuring that at least 50% of investments can be exited at values that provide investors with expected returns of approximately 9% p.a. (excluding the tax benefit) or a net rate of 17.5% p.a. (after accounting for the tax benefit)
| INDICATORS | ZIMBALI CAPITAL |
LARGEST COMPETITOR | |
| STUDENT ACCOMMODATION | HOSPITALITY | ||
| Gross dividend yield (2019) | 4.1% | 2.4% | 0% |
| Tracking IRR¹ after fees and taxes | 14.6% | 9.8% | 9.5% |
| Guaranteed exit and returns² | |
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| Growth in NAV (excl. dividend) | |
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|
| Gross performance fee | |
|
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| 100% of capital invested pre-Feb 2020 | |
|
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| Dividend paid out of profits only & not capital invested |
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| R200 000 minimum investment² | |
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| Publicly reports performance | |
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¹ The returns are calculated based on an individual investor’s net investment amount and assumes the investor is in the highest marginal tax bracket and assumes a property growth of 6% p.a.
² Underlying investments are underpinned by exit guarantees ensuring that at least 50% of investments can be exited at values that provide investors with expected returns of approximately 9% p.a. (excluding the tax benefit) or a net rate of 17.5% p.a. (after accounting for the tax benefit)
BACKGROUND
Aurik Capital, in partnership with Aurik Business Accelerator, is an opportunity for investors who are looking for private equity returns through investments into Aurik Business Accelerator’s portfolio of clients.
PERFORMANCE
Aurik Capital aims to achieve returns of between 25% to 30% per annum¹ through private equity investments in growing businesses. The risk associated with this investment is mitigated through the deep understanding of Aurik Business Accelerator’s portfolio of clients.
EXIT
The exit horizon for investors is between 6 – 8 years given the private equity nature of the investment. Aurik Capital will first look to pre-negotiate an exit with its co-shareholders or to exit alongside its co-shareholders to a strategic third-party.
INVESTMENT HIGHLIGHTS
- Aurik Business Accelerator’s portfolio consisting of over 300 businesses
- Performance fee charged on growth of investment only
- Low minimum investment
- Term: 6 to 8 years
- No upfront fees
MARKET COMPARISON
| INDICATORS | MARKET | LARGEST COMPETITOR |
| Targeted IRR¹ | 25% | 20% |
| 300+ businesses in pipeline | |
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| No upfront fee | |
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| R200 000 minimum investment² | |
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| Gross performance fee | |
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| Does not invest in start-up businesses | |
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¹ The returns are calculated based on an individual investor’s net investment amount and assumes the investor is in the highest marginal tax bracket.
² Aurik Capital’s minimum investment is R1 million until its prospectus has been approved by CIPC, thereafter the minimum investment amount will be R200 000.
INVESTOR FUNDING
Jaltech has a loan facility of R300 million through Abacus Funding Solutions to assist investors with capital in order to invest in one of Jaltech’s Section 12J investments. The funding is in the form of a facility of up to 80% of the investment amount.
The facility provides Section 12J investors with a funding solution to maximise their Section 12J tax deduction even if they have insufficient capital at the time of investment.
| WITHOUT ABACUS | WITH ABACUS | |
| Taxable income | R2.5 million | R2.5 million |
| Abacus loan amount | R0 | R450 000 |
| S12J investment | R550 000 | R1 million |
| Tax saving | R247 500 | R450 000 |
| WITHOUT ABACUS | WITH ABACUS | |
| Taxable income | R2.5 million | R2.5 million |
| Abacus loan amount | R0 | R450 000 |
| S12J investment | R550 000 | R1 million |
| Tax saving | R247 500 | R450 000 |
OUR MARKET PRESENCE
OUR MARKET PRESENCE
OUR FUNDS
- Top performing fund in 2019/2020
- Tracking a return of 15.9% per annum¹
- 100% of capital invested prior to 28-Feb-20
- 6-monthly dividend payment track record
- Top performing fund in 2019/2020
- Tracking a return of 15.9% per annum¹
- 100% of capital invested prior to 28-Feb-20
- 6-monthly dividend payment track record
- Positive returns
- Underlying investments underpinned by a guaranteed exit²
- Underlying investments underpinned by a guaranteed return²
- 100% of capital invested prior to 28-Feb-20
- Positive returns
- Underlying investments underpinned by a guaranteed exit²
- Underlying investments underpinned by a guaranteed return²
- 100% of capital invested prior to 28-Feb-20
- Newest investment opportunity
- High growth target
- In partnership with Aurik Business Accelerator
- 300+ businesses in the pipeline
- Newest investment opportunity
- High growth target
- In partnership with Aurik Business Accelerator
- 300+ businesses in the pipeline
¹ The returns are calculated based on the investor’s net investment amount and assumes the investor is in the highest marginal tax bracket.
² Underlying investments are underpinned by exit guarantees ensuring that at least 50% of investments can be exited at values that provide investors with expected returns of approximately 9% p.a. (excluding the tax benefit) or a net rate of 17.5% p.a. (after accounting for the tax benefit).
Disclaimer
The contents of this website does not constitute and should not be construed as an offer to subscribe for shares, or investment, tax, legal, accounting and/or other advice. For advice on these matters consult your preferred investment, tax, legal, accounting and/or other advisers about any information contained on this website. Infinity Anchor Fund Ltd (Reg. No. 2017/435269/06), Zimbali Capital Ltd (Reg. No. 2018/028396/06) and Aurik Capital Ltd (Reg. No. 2017/435328/06) are authorised financial service providers – FSP numbers 48981, 49374, 48928 and SARS approved Venture Capital Companies – VCC-0102 ,VCC-0124 and VCC-0119 respectively. All mentioned returns on this website are estimates at current tax rates, and past performance is not an indication of future performance. The recipient waives all and any claims against Infinity Anchor Fund Ltd , Zimbali Capital Ltd and Aurik Capital Ltd as well as their respective fund managers should he/she/it rely on any information contained herein.
