Iridium Private Equity

Iridium Private Equity (Pty) Ltd hereinafter referred to as Iridium is a BBBEE compliant company regulated by the Financial Sector Conduct Authority and registered with the South African Revenue Services as a “Venture Capital Company” in terms of Section 12J of the Income Tax Act. The company has been established to enable taxpayers to take advantage of the generous tax incentives provided for by Section 12J of the Income Tax Act whilst meeting the growing needs of SMMEs for empowerment and transformation of the broader South African economy.

The tax benefits are realised through investing in promising small and medium size business enterprises in the Republic of South Africa by way of subscribing for shares.

Furthermore, investments in Iridium could receive a contribution to their BBBEE scorecard.

How it works

Benefits of BBBEE

The benefits of having a BBBEE Section 12 J Company are two-fold:

  • A vehicle to provide an immediate return to investors, up to 45%, through the Section 12 J company with investors receiving an income tax deduction upon investment. Also, the investor benefits from a dividend flow and capital growth through the investment;
  • If the majority shareholding of the Section 12 J company is “black owned” any equity investment into a qualifying company, due to the flow through principle, will be black ownership of the equity. Therefore, in addition to the tax benefits, if a BBBEE Section 12 J company invests into an EME or a Qualifying Company at 51%, the EME or Qualifying Company will be deemed to have an automatic Level 2 BBBEE status as per the amendment codes;
  • The onus is on Iridium to remain a fully transformed entity for the investor to earn points on their scorecard. The investing entity will qualify for a maximum of 25 points according to the amended codes (at ownership level);
  • The investing entity by virtue of investing into the fund becomes a limited partner and will collect these points over the life on the fund annually.