The Fund is suited to investors who are:
Looking for real returns on capital over a medium to long-term horizon (c.36 months), while at the same time require a degree of capital stability.
Seeking managed exposure to income generating investments with limited duration risk.
Wanting to take advantage of loans originated by the leading banks in South Africa, across a broader range of issuers than available in the listed bond market.
The objective of the Kholo Capital Credit Co-Investment Fund is to achieve stable returns over 3-month JIBAR in excess of 300 – 350 basis points, gross of all fees and expenses.
The Fund aims to achieve its return target by investing in a diversified portfolio of debt instruments, predominantly in the form of bank loans to South African corporates which pay a floating rate linked to JIBAR plus a margin.
Given the return target of the Fund, returns are expected to be higher than returns offered by lower risk fixed income offerings.
Kholo Capital Credit Co-Investment Fund I
South African interest bearing – short term
Notes issued by an SPV
1 October 2020
Target Fund size
R4 billion – R5 billion
3 month JIBAR + 300 to 350 bps
Weighted Average Maturity
Approx. No. of Loans in the Fund
20 – 30
Annual Management Fee
Invested Capital: 0.5%