Westbrooke raises R565 million

Investors took advantage of the S12J tax incentive to help Westbrooke raise R565 million.

Westbrooke Alternative Asset Management, South Africa’s largest Section 12J manager, has successfully closed its 2018 fiscal year fundraise, with over R565 million raised across four S12J investment strategies.
 
Dino Zuccollo, fund manager at Westbrooke Alternative Asset Management, says:

“We saw increased traction this year as we do each year in this relatively new asset class. We raised R420 million in 2016 and R470 million in 2017, so we are seeing excellent growth year-on-year, which bodes well for the industry. There are almost 100 registered S12J companies in SA.”  

In its 2018 budget review, National Treasury acknowledged the incredible growth in the Section 12J industry over the past two years. Indeed, it is estimated that the S12J market is now valued at more than R3 billion.

S12J is an investment tax incentive that was introduced by SARS under Section 12J of the Income Tax Act in 2009. It wasn’t until 2014, however, when SARS made several favourable amendments to the Section 12J legislation, that the industry began to gain traction in investment circles.