Everest has launched a R20bn domestic medium-term note (DMTN) program listed on the Cape Town Stock Exchange (CTSE), marking its strategic entry into South Africa’s growing private and structured credit market.
The move is in line with the growing demand for alternative funding solutions in a well-established debt capital markets environment. With approximately 1,600 listed debt instruments on the Johannesburg Stock Exchange and over R1.8tn outstanding, Everest’s initiative positions it to join a deep, sophisticated and increasingly dynamic credit ecosystem.
This environment continues to attract investors looking for diversified, fixed or floating, yield streams due to increased demand for structured credit solutions driven by volatility in global equity markets and tightening bank credit conditions.
markets fund the economy
South Africa remains Africa's largest bond market by volume, with total bond market activity estimated at approximately $328 billion (equivalent to over R6 trillion) and thousands of issuances across sovereign, corporate and structured debt instruments.
At the same time, global private debt markets have expanded significantly, with assets under management rising from approximately $158 billion in 2010 to approximately $2 trillion by 2024, reflecting a structural shift toward non-bank lending platforms.
Everest believes South Africa is following this global trend as investors look for yield solutions and portfolio diversification away from solely equity-driven returns.
Results-driven investing
Everest Wealth Management, the program's investment manager, currently oversees approximately R3.5 billion in assets across private equity, income and results-driven portfolios, placing the group among the emerging players in South Africa's alternative income investment landscape in recent years.
Thies Van Zyl, industry strategist and CEO of Everest Advisory Services and founder of Everest Wealth Management, said the program reflects broader evolution in investors' approach to risk and portfolio construction.
“Markets globally are moving towards disciplined income strategies and structured debt investments where capital preservation and yield stability become as important as return generation.
“Investors are increasingly recognizing that well-structured results portfolios can deliver competitive long-term returns while mitigating the risk of daily market volatility.”
advice to markets
The Everest DMTN program represents the firm's transition from a traditional wealth advisory to a capital markets partnership, 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 debt within global and domestic alternative investment portfolios.
“We are not building a product, we are building a capital infrastructure designed to support responsible credit expansion while targeting diverse yield-focused investment opportunities,” said Jarryd Gilmour, chief executive officer of Everest Wealth Management.
The program will be implemented through a responsible, phased issuance over the coming months, tailored to eligible investment opportunities, investor participation and broader market conditions.
Gilmour says it is important to note that Everest Credit Partners is approved as an applicable issuer under the CTSE's YieldLink Multi-Issuer DMTN program.
“This approval represents an important milestone in Everest’s private credit strategy and enables the issuance of listed debt instruments in accordance with the program framework.”
Governance and risk discipline
The program operates under a structured governance framework in line with institutional credit market standards. To this end, Everest is implementing a build-operate-transfer model that combines external expertise with internal development to create a dedicated credit capability covering origination, structuring, portfolio management and monitoring.
“This reflects the strategic depth and the team has also carefully considered the implementation which will include investment committee oversight, formal due diligence processes, credit risk analysis, portfolio monitoring structures and performance reporting frameworks,” Gilmour said.
He says Everest believes that disciplined governance is important for investor confidence in the private debt markets.
“In credit markets, trust is built through governance and stability. Long-term investor relationships are earned through disciplined execution rather than aggressive risk taking.”
Gilmour says it is important to note that credit capacity will operate independently of capital raising activities, ensuring separation between distribution and credit decision making.
Understanding Risk in Investment Instruments
Everest notes that structured credit investments form part of a broader investment spectrum alongside listed equities, corporate and government bonds, each of which has different risk characteristics.
South Africa's credit markets include:
– Government bonds, which generally offer less risk and lower yield
– Corporate loans that offer moderate yield with no credit risk
– Structured loan offers yield premium with disciplined structure
– Equity exposed to growth potential but high volatility
Market data shows government bonds dominate trading activity, with about R49bn traded daily, compared to about R346m daily in corporate credit instruments, reflecting the buy-to-hold nature of income-focused investing. Everest believes this reinforces the role of structured debt as a long-term income asset class rather than a trading instrument.
Supporting SA's evolving credit ecosystem
Everest expects the program to support financial platforms in need of structured capital to expand responsible lending activities within a regulated framework.
The firm believes that 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 specialized funding platforms,” Van Zyl said.
“Everest is positioning itself within this development.”
long term vision
Everest sees this program as the foundation of a broader capital markets strategy that aims to expand and strengthen its role within South Africa's alternative investment ecosystem.
The Group intends to expand its capabilities to:
– Structured Credit Platform
– Alternative Income Investments
– Broader capital market participation
– private market investing
– Results-driven investment strategies
“Our ambition is to become a recognized player in South Africa’s private debt landscape through disciplined growth and consistent investor results,” Van Zyl said.
Gilmour is confident that Everest has positioned itself strategically for the future and in line with its envisioned growth.
“Private credit is an important component of alternative portfolios globally and we believe this initiative positions Everest to meaningfully participate in that growth through disciplined investment selection and a focus on client outcomes.”
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