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WHY NREACH | CAPITIS | LAYSAN
Our competitors’ glossy brochures often fail to connect with the general public, relying on a fairy tale-like narrative and excessive technical jargon.
At nReach Capitis Laysan, we recognise that investing is a real-life experience and understanding investor’s goals is crucial for navigating your investment objectives amidst challenges and opportunities.
With our innovative investment structure called the “Contract for Yield” (CFY™) we lead the industry by delivering predictable returns. Our focus is on investing in real businesses operated by real individuals within essential consumer sectors. These small and medium-sized enterprises (SMEs) make significant contributions to GDP and offer highly appealing investment prospects.
Sadly, the majority of our competitors disregard this untapped universe simply because these businesses are not listed on stock exchanges.
Our History
Feb 2017 - CIRCA
- The company was incorporated in 2016 and in June 2017 “opened its doors” for business.
- nReach Capitis Laysan is a registered S12J VCC with SARS [VCC 0052] and a “Category II” Financial Services Provider authorised by the FSCA of South Africa [FSP No. 47502].
- All partners and principles either have substantial experience in being an entrepreneur, acquiring, building and exiting assets, fund raising, asset/fund management, business rescue and private equity.
- We have 'own skin in the game' and a hurdle rate pledge for investors.
Feb 2018 - 1st 12J Investors
- To meet the challenge of access to venture capital for small and medium-sized enterprises, government introduced the section 12J of the Income Tax Act (‘the Act’) tax incentive for individual investors, corporate investors and venture capital funds in qualifying small enterprises and start-ups.
- The tax incentive took effect from 1 July 2009.
- The uptake for this tax incentive has been very limited. In the 2014 National Budget Review, Government announced various amendments to the venture capital company regime, resulting in 12J investments “getting traction”.
- VCC investors enjoyed an immediate tax deduction equal to 100% of the amount invested with a R2.5 million (Individuals & Trusts) & R5 million (Companies) annual limit; BUT no lifetime limit (section 12J of the Income Tax Act, 1962 (‘ITA 1962’).
Feb 2021 - Merger with Capitis Equities
- Reach One (Pty) Ltd facilitated the first merger with another VCC as the 12J industry is bound to consolidate. The first VCC company merger into nReach One took place - Capitis Equities (Pty) Ltd - VCC-0096 // FSP 48600
- The merged entity became nReach Capitis (Pty) Ltd - VCC 0052 // FSP 47502; managing around ZAR375 million in over 20 SME businesses.
Jun 2021- Sunset Clause for 12J
- Section 12J provided for a sunset clause of 30 June 2021 in order to review and assess the effectiveness, impact and role of the incentive.
- National Treasury has found that the incentive, since its introduction, has not adequately achieved its objectives or has been implemented in the manner National Treasury initially envisaged.
- The Minister of Finance, therefore, announced during the 2021 Budget Speech that the section 12J incentive will not be extended beyond its current sunset date.
- The discontinuation of the incentive does not affect investments made before the sunset date and will not impact persons who invested before 30 June 2021.
- As a result, our 12J Fund became closed-ended.
Jun 2021 - Launch 3 Retail Funds
- Post-sunset, three additional retail-focused investment funds were initiated, all using LLP structures.
- The 3 different fund mandates offer prospective investors a choice between:
- FIXED INCOME [5 year investment term with a performance hurdle-rate of average12%],
- GROWTH [5 year investment term with a performance hurdle-rate of 16%pa simple] , or
- ULTRA [5 – 7 years investment with a performance hurdle-rate of 20%pa simple]
- The investment theme across all funds is SME impact, focusing on sectors such as the green economy and financial inclusion.
- Regardless of the investment platform, NCL guarantees investors a predictable outcome through a methodology called CFY™ –Contract for yield, which is a blend of equity and debt-like investments into SMEs, ensuring liquidity at the maturity of the investor's product/mandate.
Aug 2021 - Launch Shariah Fund
- Launch of the TAYYIBAN SHARIAH FUND, managed by nReach Capitis.
- This Shariah-compliant investment fund is governed by the requirements of Shariah law and the principles of the Muslim religion.
- This fund qualifies for one of many categories found in socially responsible investing. Similar to other socially responsible funds within the environmental, social and governance (ESG) universe, the fund complies with the specific requirements desired by followers of the Muslim religion.
Sep 2022 - CTSE Listing
- In August 2022 nReach I Capitis I Laysan launched a ZAR20,000,000,000 Domestic Medium Term Note Programme on the Cape Town Stock Exchange (“CTSE”). The Note Programme was launched by dual issuers, namely nReachCapitas SPV One and Insight Capital SPV One, both managed by nReach Capitis Laysan.
- The purpose thereof is to raise additional capital from the formal capital markets to increase the current assets under management of nReach Capitis Laysan.
- In addition, give formal capital market investors exposure to SME business assets, which provides a predictable outcome and a negligible correlation to conventional asset classes as well as to meet Regulation 28, packaging their offering in a more conventional way.
Oct 2022 - Launch Worldwide Flex Fund
- nREACH CAPITIS IP WORLDWIDE FLEXIBLE FUND is approved by the FSCA and launched.
- Conventional investment markets in South Africa, and global markets, are much more turbulent and uncertain for quite some time. It is for that reason that investor capital into alternative asset classes are growing rapidly. At nReach Capitis Laysan we are making these historically exclusive investment opportunities more mainstream and accessible to retail investors by blending these with conventional asset classes for superior yields with lower volatility.
- Although yields in the alternative investment space are uncorrelated to conventional asset classes, we still believe that if prudency prevails, all investment eggs should not be put into one basket - balance in our investment approach.
Feb 2023 - Merger with Laysan LTD
- nReach Capitis (Pty) Ltd merges with yet another VCC as further consolidation of the 12J industry takes place. The second VCC company merger into nReach Capitis took place - Laysan LTD – VCC 0115 // FSP 49110
- The merged entity became nReach Capitis Laysan (Pty) Ltd - VCC 0052 // FSP 47502; managing around ZAR1.6 billion in over 30 SME businesses.
Apr 2023 - Launch of OTC-desk (“Over the Counter”)
- That ‘life happens’ in strange ways is evident again in the times we live in today. The opportunity to launch an “Over-the-Counter” (OTC) offering came about as a result of ad-hoc requests for pre-mature redemptions from investors experiencing an unforeseen “real life event” resulting in a shortfall of money.
- From our OTC-desk we made available our partnership replacement offering for our Income portfolio.
- This provides the opportunity for a shorter-term investment, starting today for the remaining term on an existing limited partnership contract. The OTC client will be entering the partnership on a higher entry yield for a shorter term. OTC’s are limited and restricted to amounts equal to pre-mature redemption requests.
May 2023 - Launch Fully Automated CRM & On-boarding System
- The “Allianz Risk Barometer” is a report identifying the major business risks for 2023 globally. It ranks the most important risks identified by 2,712 risk management experts from 94 countries and territories. Globally, Cyber incidents (e.g. cyber crime, malware/ransomware causing system downtime, data breaches, fines and penalties) are ranked No. 1 as the most important business risk in 2023.
- On 1 May 2023, nReach Capitis Laysan’s portfolio- and investor IT systems were fully automated with very high level of cyber protection.
- The system is proprietary and was coded in accordance with strict FSCA and FIC regulations; incorporating the findings and suggestions documented in an “IT Management Risk Gap Analysis Report” for nReach Capitis Laysan.
Jun 2023 - Establishing 2 institutional funds.
- nReach Capitis Laysan is currently developing two institutional funds, set to house a combined ZAR1 billion.
- Details will be provided after finalization and on “1st Close” of each fund.
Jun 2023 - Launch of Section 12B Solar Fund (Closed-ended)
- In 2004, Government introduced an accelerated depreciation allowance for investments in biodiesel and biofuels in section 12B of the Income Tax Act. Government has temporarily expanded the tax incentive available for businesses to promote renewable energy, to encourage private investment to alleviate the electricity crisis.
- Under the expanded incentive, businesses will be able to claim a 125% deduction in the first year for all renewable energy projects, with no thresholds on generation capacity.
- However, the adjusted incentive will be available only for investments brought into use for the first time between 1 March 2023 and 28 February 2025.
- Our 12B Private Equity Fund invests 100% of the capital with our Solar partner Soldustria (Pty) Limited. The investment is in an en-commandite limited partnership as a business interest in the 12B Solar Fund, managed by nReach | Capitis | Laysan.
Invest In Your Future
nReach Capitis Laysan is an Authorized Financial Services Provider with FSP number 47502 & VCC 0052
Why Investors Choose Us
We have the highest risk adjusted income and capital growth generation yields versus our peers.
We truly aim to help the business and their entrepreneurs develop and grow with us.
We pay income yields more often per annum than our peers.
We never engage in a transaction if we can’t create impact, such as creating new jobs for South Africa.
We value proper balance and diversification.
We not only invest in alternative assets, but we also think alternatively about investing in these assets.