Everest to Launch R20 Billion Capital Markets Programme as Demand for Private Credit Investments Accelerates in South Africa.

Everest has announced the establishment of a R20 billion Domestic Medium-Term Note (DMTN) Programme listed on the Cape Town Stock Exchange (CTSE), positioning the firm as an emerging participant in South Africa’s expanding private and structured credit investment market.

The programme launches at a time when South Africa maintains one of the most developed debt capital markets among emerging economies, with the Johannesburg Stock Exchange debt market alone comprising approximately 1,600 listed debt instruments with more than R1.8 trillion in nominal outstanding value, highlighting the scale and maturity of the country’s debt capital market ecosystem.

This environment continues to attract investors seeking diversified, fixed or floating, yield streams as volatility in global equity markets and tightening bank credit conditions drive increased demand for structured credit solutions.

Capital markets increasingly funding the real economy

South Africa remains Africa’s largest bond market by volume, with total bond market activity estimated at approximately $328 billion (over R6 trillion equivalent) and thousands of issuances across sovereign, corporate and structured debt instruments.

At the same time, global private credit markets have expanded significantly, with assets under management growing from approximately $158 billion in 2010 to nearly $2 trillion by 2024, reflecting a structural shift toward non-bank lending platforms.

Everest believes South Africa is following this global trend as investors increasingly seek yield solutions and portfolio diversification away from only equity-driven returns.

A move toward outcome-driven investing

Everest Wealth Management, investment manager to the programme, currently oversees approximately R3.5 billion in assets across private equity, income and outcome-driven portfolios, positioning the group over recent years among emerging players in South Africa’s alternative income investment landscape.

Thys Van Zyl, industry strategist and CEO of Everest Advisory Services and founder of Everest Wealth Management, said the programme reflects a broader evolution in how investors approach risk and portfolio construction.

“Markets globally are shifting towards disciplined income strategies and structured credit investments where capital preservation and yield stability become as important as return generation.” “Investors are increasingly recognising that well-structured outcome portfolios can deliver competitive long-term returns while reducing exposure to daily market volatility.”

From wealth advisory to debt capital markets funding platform

The Everest DMTN programme represents the firm’s transition from traditional wealth advisory into capital markets participation, enabling the creation of a scalable funding platform to support structured credit opportunities. To this end, Everest has established Everest Credit Partners as a dedicated private credit investment vehicle. This development follows a sustained period of strategic planning and market engagement, during which Everest evaluated the growing role of private credit within global and domestic alternative investment portfolios. Jarryd Gillmer, Chief Executive Officer of Everest Wealth Management, said:

“We are not building a product, we are building capital infrastructure designed to support responsible credit expansion while targeting diversified yield focused investment opportunities.”

The programme will be implemented in coming months through a responsible, phased issuance, aligned with qualifying investment opportunities, investor uptake and broader market conditions.

Gillmer says it is important to note that Everest Credit Partners has been approved as an Applicable Issuer under the CTSE’s YieldLink Multi-Issuer DMTN Programme.

“This approval represents a key milestone in Everest’s private credit strategy and enables the issuance of listed debt instruments in accordance with the programme framework.”

Governance and risk discipline central to strategy

This programme operates under a structured governance framework aligned with institutional credit market standards. To this end, Everest is implementing a build-operate-transfer model which combines external expertise with internal development to build a dedicated credit capability covering origination, structuring, portfolio management, and monitoring.

“This shows strategic depth and that the team has also given careful thought to execution which will include amongst others, investment committee oversight, formal due diligence processes, credit risk analysis, portfolio monitoring structures and performance reporting frameworks,” Gillmer said.

He says Everest believes disciplined governance is critical to investor confidence in private credit markets.

“In credit markets, trust is built through governance and consistency. Long-term investor relationships are earned through disciplined execution rather than aggressive risk taking.”

Gillmer says it is important to note that the credit capability will operate independently of the capital-raising activities, ensuring separation between distribution and credit decision making.

Understanding risk across investment instruments

Everest notes that structured credit investments form part of a broader investment spectrum alongside listed equities, corporate and government bonds, each with distinct risk characteristics.

Within South Africa’s credit markets:

• Government bonds typically offer lower risk and lower yield
• Corporate debt offers moderate yield with credit risk
• Structured credit offers yield premiums with disciplined structuring
• Equities offer growth potential but higher volatility

Market data shows government bonds dominate trading activity, averaging approximately R49 billion daily trading, compared to roughly R346 million daily in corporate credit instruments, reflecting the buy-to-hold nature of income-focused investments. Everest believes this reinforces the role of structured credit as a long term income asset class rather than a trading instrument.

Supporting South Africa’s evolving credit ecosystem

Everest expects the programme to support financial platforms requiring structured capital to expand responsible lending activities within regulated frameworks.

The firm believes capital markets will play an increasingly important role in supporting these sectors as traditional bank funding becomes more selective.

“The future of credit funding will involve a combination of banking institutions, capital markets and specialised funding platforms,” Van Zyl said.

“Everest is positioning itself within this evolution.”

Long-term vision

Everest views the programme as the foundation of a broader capital markets strategy aimed at expanding and strengthening its role within South Africa’s alternative investment ecosystem.

The group intends to expand its capabilities across:

• Structured credit platforms
• Alternative income investments
• Broader capital market partnerships
• Private market investments
• Outcome-driven investment strategies

“Our ambition is to become a recognised participant in South Africa’s private credit landscape through disciplined growth and consistent investor outcomes,” Van Zyl said.

Gillmer is confident that Everest has positioned itself strategically for the future and in line with its envisaged growth.

“Private credit is an increasingly important component of alternative portfolios globally and we believe this initiative positions Everest to participate meaningfully in that growth, while continuing to focus on disciplined investment selection and client outcomes.”

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Author: Sya Potgieter from https://everestwealth.co.za/ on behalf of Everest Wealth.

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