South Africa's Creation Capital launches listed private credit vehicle
The fund combines privately originated debt investments with a listed note structure.
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South African private credit investment manager Creation Capital has launched the Creation Yield Fund, a hybrid private credit vehicle that combines privately originated debt investments with a listed note structure on the Cape Town Stock Exchange.
The fund has a target size of R3 billion (US$183 million) and launches with an initial issuance of R300 million (US$18.3 million) anchored by a large South African pension fund.
It is designed to channel institutional capital into South Africa’s underbanked SME and mid-corporate market sector.
With a minimum investment of R50 million (US$3.1 million), the listed note is designed to appeal to institutional investors such as pension funds and insurers, as well as high-net-worth individuals and family offices.
Creation Capital CEO Kasief Isaacs said: “Private credit has become increasingly attractive to investors because it can unlock differentiated yield opportunities in areas of the economy that are often underserved by traditional lenders. However, access to the asset class has historically been constrained by liquidity considerations and regulatory allocation limits applicable to unlisted investments.”
He added: “By bringing the fund to market through a listed note structure, Creation Capital enables investors to access private credit exposure through a regulated, exchange-listed instrument. This is particularly significant in the context of Regulation 28 of the Pension Funds Act: while retirement funds face tighter constraints when allocating capital to certain unlisted and alternative investments, listed debt instruments benefit from broader allocation capacity. Investors can access the return and impact characteristics of private credit while benefiting from the governance and disclosure standards associated with a listed instrument and retaining some of the oversight rights they typically receive in an unlisted fund.”
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