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.
Fund | Kholo Capital Credit Co-Investment Fund I |
Fund Classification | South African interest bearing – short term |
Investment Structure | Notes issued by an SPV |
Launch Date | 1 October 2020 |
Target Fund size | R4 billion – R5 billion |
Target Returns | 3 month JIBAR + 300 to 350 bps |
Weighted Average Maturity | 3 years |
Approx. No. of Loans in the Fund | 20 – 30 |
Denomination | ZAR |
Income Distribution | Quarterly |
Pricing | Monthly |
Commitment Period | 24 Months |
Annual Management Fee | Invested Capital: 0.5% |
Kholo Capital is a black owned and managed fund management company. The management team has more than 60 years of collective credit and investment experience and is highly skilled in senior debt, mezzanine debt and private equity.
