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 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 such as rental income, 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

  • 2019 – Gross dividend yield. 4.94% per annum after fees and taxes
  • 2019 – Net yield 9.98 per annum²
  • 2019 – Gross return on capital 5.87% 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
  • Low minimum investment
  • 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.

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% 10.49%
Growth in NAV (excl. dividend)
Gross performance fee
100% of capital invested pre-Feb 2020
Dividend paid out of profits only
& not capital invested
R200 000 minimum investment³
Publicly reports performance

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.
³ Infinity Anchor Fund’s minimum investment is R1 million until its prospectus has been approved by CIPC, thereafter the minimum investment amount will be R200 000.

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 net dividend yield of 9% 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 – Net dividend yield of 9% per annum¹
  • Tracking an IRR of 15.6% per annum¹ after fees and taxes
  • 100% of capital invested as at 28 Feb 2020
  • Low minimum investment
  • 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%⁴ (excluding the tax benefit)

MARKET COMPARISON

INDICATORS ZIMBALI
CAPITAL
LARGEST COMPETITOR
STUDENT ACCOMMODATION HOSPITALITY
Gross dividend yield (2019) 5.2% 2.4% 0%
Tracking IRR¹ after fees and taxes 15.6% 9.8% 9.5%
Guaranteed exit and returns²
Growth in NAV (excl. dividend)
Gross performance fee
100% of capital invested pre-Feb 2020
Dividend paid out of profits only
& not capital invested
R200 000 minimum investment³
Publicly reports performance

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)
³ Zimbali Capital’s minimum investment is R1 million until its prospectus has been approved by CIPC, thereafter the minimum investment amount will be R200 000.
⁴ The returns are calculated assuming a property growth of 6%.

INDICATORS ZIMBALI
CAPITAL
LARGEST COMPETITOR
STUDENT ACCOMMODATION HOSPITALITY
Gross dividend yield (2019) 5.2% 4% 0%
Tracking IRR¹ after fees and taxes 15.6% 9.8% 9.5%
Guaranteed exit and returns²
Growth in NAV (excl. dividend)
Gross performance fee
100% of capital invested pre-Feb 2020
Dividend paid out of profits only
& not capital invested
R200 000 minimum investment³
Publicly reports performance

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)
³ Zimbali Capital’s minimum investment is R1 million until its prospectus has been approved by CIPC, thereafter the minimum investment amount will be R200 000.
⁴The returns are calculated assuming a property growth of 6%.

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
No upfront fee
R200 000 minimum investment²
Gross performance fee
Does not invest in start-up businesses

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.

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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