Section 12B Investment Fund

Our Section 12B Investment Fund, offers clients the opportunity to invest in a portfolio of renewable energy-producing assets. Alongside great long-term returns from this alternative asset class, investors benefit from a significant up-front tax deduction of 100% on the amount invested.

Upfront tax deduction

Section 12B of the Income Tax Act No. 58 of 1962 provides a tax deduction for qualifying assets used in the production of electricity from renewable sources in South Africa. This incentive allows businesses to reduce their taxable income by investing in renewable energy projects.

Under Section 12B, taxpayers can claim a 125% up-front tax deduction for all renewable energy projects, with no restrictions on generation capacity. This incentive applies exclusively to projects that generate electricity for the first time between 1 March 2023 and 28 February 2025.

THE BENEFITS

The opportunity

01

Investing in green energy helps address South Africa’s ongoing energy crisis, supporting the need for a reliable electricity and energy supply.

02

Contribute to reducing South Africa’s carbon footprint while supporting sustainable energy generation.

03

Directly stimulate economic growth by investing in renewable energy projects.

04

Earn attractive returns with the added advantage of tax deductions.

Fund details

The Fund will be mandated to own and operate a portfolio of renewable energy-generating assets that sell the generated electricity to creditworthy counterparties, which are bound by long-term power purchase agreements.

Targeted internal rate of return (IRR):

15% ungeared pre-tax return (before the section 12B tax benefit)
25% ungeared pre-tax return after the 12B tax benefit
+/-45% geared pre-tax return after the 12B tax benefit and gearing

Distribution:

Bi-annual proceeds from power purchase agreement (PPA).

Fees:

Management fee: A management fee of 2% per annum is payable to the fund manager on the capital invested.

Performance fee: 20% carry after repayment of capital at risk.

R 1 Million

Minimum Investment

10 years

fund term

Meet our team

Bradley Anthony

Chairman of Investment Committee

Carmel Chinswami

Infrastructure Portfolio Manager

John-Paul Dicks

Infrastructure Portfolio Manager

Obakeng Mophosho

Infrastructure Analyst

MJ Dippenaar

Infrastructure Analyst

Bradley Anthony

Chairman of Investment Committee

1993

Started in the investment industry

2011

joined Fairtree

Bradley joined Fairtree in 2011 and is a Group Director, providing business leadership to the group in support of the CEO. He also serves as Chairman of the Infrastructure Investment Committee and is a Multi-Strategy Portfolio Manager in the Investment team. He began his career in banking in 1993 at Cape of Good Hope Bank, where he worked in the Treasury team, contributing to the asset liability management process with a focus on interest rate and liquidity risk. In 2002,……

Know more about

Carmel Chinswami

Infrastructure Portfolio Manager

2006

Started in the investment industry

2024

joined Fairtree

Carmel joined Fairtree in 2024 and is an Infrastructure Portfolio Manager in the Investment team. She began her career in 2005 at Sanlam in the Corporate Finance team, where she spent 18 years gaining extensive experience across various roles within the group. Carmel holds a Bachelor of Commerce Honours degree in Accounting and is a Chartered Accountant.

Know more about

John-Paul Dicks

Infrastructure Portfolio Manager

2009

Started in the investment industry

2023

Joined Fairtree

John-Paul joined Fairtree in 2023 and is an Infrastructure Portfolio Manager in the Investment team. He began his career in 2004 at PwC as an accountant, where he progressed to the role of manager. In 2009, he joined PSG Capital as a corporate financier. From 2017, John-Paul served as director and chief financial officer of the ZAQ Group of Companies, where he played a key role in corporate finance advisory, fund structuring, and managing group investments. He also holds operational……

Know more about

Obakeng Mophosho

Infrastructure Analyst

2016

Started in the investment industry

2017

joined Fairtree

Obakeng joined Fairtree in 2017 as an equity research intern and is currently a Multi-Strategy Analyst in the investment team. He also serves on the Investment Committee of the Fairtree Infrastructure Debt Fund. He began his career in 2016 as a junior analyst at the Financial Services Board. Obakeng holds a Bachelor of Commerce degree in Corporate Finance and Investment Management & Economic Theory, and a Bachelor of Commerce Honours degree in Business Finance, both from the University of the……

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MJ Dippenaar

Infrastructure Analyst

2019

Started in the investment industry

2019

Joined Fairtree

Michael-John joined Fairtree in 2019 and is a Multi-Strategy Analyst and Infrastructure Analyst in the Investment team. Before joining Fairtree, he co-founded Sxuirrel, a technology start-up based in South Africa. Michael-John holds a Bachelor of Commerce degree in Investment and Financial Management and an Honours degree in Financial Analysis, both from the University of Stellenbosch. He also completed the Summer Institute for General Management at Stanford University Graduate School of Business.

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Contact Us

Fairtree Head Office

Email: [email protected]
Tel: +27 861 760 760

John-Paul Dicks

Email: [email protected]
Tel: +27 84 547 1139

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Section 12B Investment Fund

Upfront tax deduction

The opportunity

01

02

03

04

Fund details

Investment opportunity

Meet our team

Bradley Anthony

Carmel Chinswami

John-Paul Dicks

Obakeng Mophosho

MJ Dippenaar

Bradley Anthony

Carmel Chinswami

John-Paul Dicks

Obakeng Mophosho

MJ Dippenaar

Contact Us

Fairtree Head Office

John-Paul Dicks

Let us manage your investment journey

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