Our Fund

A typical fund comprises of a portfolio of investments, in which capital belonging to numerous investors is used to collectively purchase shares in other businesses while each investor retains ownership of his/her shares.

The Kalon Venture Partners fund invests in the most promising disruptive tech companies by the most experienced and successful board of investors.

Kalon Venture Partners aims to achieve an investment return of five times the risk capital invested within 6 years with a targeted Internal Rate of Return of more than 30% per annum. An investment in Kalon Venture Partners should be considered as a medium to long-term investment.

One of the main challenges to the economic growth of small and medium-sized businesses and junior mining exploration is access to equity finance. To assist these sectors in terms of equity finance, the South African government has implemented a tax incentive for investors in such enterprises through a Venture Capital Company (VCC) regime.

In terms of Section 12J of the Income Tax Act, investors will be entitled to deduct from their income the full amount of their investment in Kalon Venture Partners in the tax year in which the investment is made. This tax relief mitigates the investment risk and significantly enhances the potential return. In addition, if an investment in Kalon Venture Partners exceeds the investor’s taxable income in the year that the investment is made, the tax loss created can be carried forward to subsequent years.

A return of capital limited to the amount of the initial investment will not be subject to income tax as a recoupment in the hands of an investor provided that the investment has been held for no less than five years.

Kalon Venture Partners intends to return realised investment surpluses to shareholders by way of dividends. Dividends paid will be subject to Dividend Withholding Tax as applicable.

Capital Gains as well as original capital returned to investors will be subject to Capital Gains Tax.

Kalon Venture Partners is a Venture Capital Company licensed as a Financial Services Provider in terms of Section 8 of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002) under licence number 46525

Kalon Venture Partners is also registered with SARS as a Venture Capital Company in terms of Section 12J of the Income Tax Act No. 58 of 1962 under reference number VCC-0030.

Kalon Venture Partners has obtained legal opinion that it does not fall within the ambit of the Collective Investment Schemes Control Act no. 45 of 2002.

Kalon Venture Partners Fund

Average Investment Size: R5 000 000 to R10 000 000
 Current Size of Fund: R90 000 000
 Fund Manager & Promoter: Kalon Venture Partners Management Company (Pty) Ltd
 Administrative Manager: Venture Capital Management Services (Pty) Ltd
 Subscription price per share: R1 000
 Minimum Subscription per investor: R100 000
 Maximum Subscription per investor: R20 000 000
 Targeted Returns: IRR > 30% per annum
 Times Money: 5 times over a 6-year period
 Capital Raising Fee: 3% of funds raised
Management Fee: 2.5% per annum of total funds raised paid quarterly in advance
Performance Fee: For every 4 ordinary shares issued to investors,
The manager is issued with 1 ‘A’ Ordinary Share.