Categories: Reviews

The Power of nReach Capitis Layson: A 2024 Comprehensive Review

Published by
Lethabo Ntsoane

In the world of alternative asset management, where uncertainty often reigns, nReach Capitis Layson shines as a Category 2, full discretionary Alternative Asset Manager. This extensive review aims to unravel the company’s mission, the spectrum of its products and services, the benefits and drawbacks of choosing nReach Capitis Layson, an exploration of its distinguished team, an assessment of its track record, and a conclusive evaluation of its overall impact on the financial landscape in South Africa and the rest of the world.

Company Overview

nReach Capitis Layson operates as a Category 2, full discretionary Alternative Asset Manager. The company’s mission revolves around making alternative asset investments accessible to retail investors, challenging the traditional exclusivity of such opportunities. Specializing in SME (Small and Medium Enterprise) Growth Funds, the company recognizes the pivotal role these enterprises play in job creation and economic prosperity.

Products and Services

1. Alternative Asset Management

The core of nReach Capitis Layson’s offerings lies in alternative asset management. The company strategically diversifies its portfolio across various sectors, including waste recycling, agriculture, technology, financial services, solar, fiber, and telecommunications.

2. Investment Platforms

Operating diverse investment platforms, including Section 12J funds and Shariah-approved Private Equity (PE) funds, nReach Capitis Layson caters to different investor preferences, providing flexibility and a range of options.

3. Contract For Yield Methodology

A distinctive feature of nReach Capitis Layson’s approach is the use of the Contract For Yield (CFY) methodology, ensuring optimal yields versus risk and exit liquidity for investors, setting it apart in the market.

Benefits of Using nReach Capitis Layson

1. Diversification and Stability

The company’s emphasis on SMEs and diverse industries contributes to a balanced portfolio, reducing volatility ratios and enhancing stability, a crucial factor for risk-averse investors.

2. Enhanced Yields

Investing in alternative assets can yield higher returns compared to conventional asset classes. The company’s track record indicates impressive compounding annual growth rates and substantial revenue generation for portfolio companies.

3. Strategic Approach to Risk Management

The CFY methodology, combined with a balanced investment approach, reflects nReach Capitis Layson’s commitment to strategic risk management, aiming to protect investments during market turbulence and uncertainty.

4. Transparent and Responsible Investing

The company places a strong emphasis on legal disclosure, ensuring transparency for investors. The commitment to responsible investing is evident in its track record, adherence to regulations, and partnerships with businesses compliant with BEE (Black Economic Empowerment) legislation.

Advantages and Disadvantages nReach Capitis Layson

Advantages

1. Pioneering Initiatives

nReach Capitis Layson stands out for its first-to-market initiatives, including being founding members of the 12J Industry Association, launching a Living Annuity with a “Private Debt Fund,” and merging three 12J Asset Managers. These initiatives showcase the company’s pioneering spirit.

2. Strategic Partnerships

The company’s collaborations with advisory partners and investee companies highlight its ability to form strategic partnerships. These partnerships contribute to due diligence processes, risk mitigation, and overall success in a competitive market.

3. Experienced and Diverse Team

nReach Capitis Layson boasts a team of experienced and entrepreneurial fund managers. The team’s diverse expertise, including legal, compliance, advisory, and fund management, strengthens the company’s ability to navigate complex financial landscapes.

4. Positive Impact on SMEs

The company’s focus on SMEs goes beyond financial returns. By supporting these enterprises with track records, capable owners, and growth opportunities, nReach Capitis Layson actively contributes to job creation and economic prosperity.

Disadvantages

1. Perception Challenges

The concept of alternative assets may pose challenges in perception for retail investors. Overcoming the traditional perception of higher risk associated with alternative investments could be a hurdle.

2. Learning Curve for CFY Methodology

While the CFY methodology provides a unique approach to investment, it may require time for investors to fully understand and embrace this methodology. Education and communication on this front become essential.

Meet The Team

Board Members and Executives

  1. Willem Oberholzer (CA, SA): Executive Chairman of the Board.
    • Achievements: Leadership in steering the company’s growth and strategic direction.
  2. Emceé Nell (CA, SA): Executive Director.
    • Achievements: Contribution to financial strategy and regulatory compliance.
  3. Dr. Johann Kritzinger: Executive Director.
    • Achievements: Expertise in investment strategies and portfolio management.
  4. Kiep Davel (TRP, SA; BS&S, UP): CCO.
    • Achievements: Oversight of compliance operations and risk management.
  5. Dawie Labuscagne (Industrial Psychology): Private Clients & Distribution.
    • Achievements: Contribution to client relations and distribution strategies.
  6. Chandre Hamman (CA, SA): CFO.
    • Achievements: Financial stewardship and strategic financial decision-making.
  7. Danie Grobler (CA, SA): Executive Director.
    • Achievements: Strategic insights into investment decisions and portfolio management.
  8. Marnus Coetzee (CA, SA): Executive Director.
    • Achievements: Leadership in financial strategy and investment management.
  9. Geert Doyer (CA, SA): Investment Committee Chairman.
    • Achievements: Leadership in guiding investment committee decisions.

Advisory and Investment Committee

  1. Dave Andrews: Advisory Member.
    • Achievements: Advisory role in strategic decision-making.
  2. Emile Raubenheimer (BCom Hons): Member.
    • Achievements: Contribution to diverse perspectives in strategic planning.
  3. Jennifer Bokwa (LLB): Fund Management.
    • Achievements: Legal expertise in fund management operations.
  4. Esme Botha (CA, SA):
    Member.
    • Achievements: Strategic insights into financial planning and investment.
  5. Rirhandzu Munisi (MA Finance & Investment): Fund Management.
    • Achievements: Expertise in finance and investment management.

Track Record

nReach Capitis Layson’s track record speaks volumes about its financial performance:

  • +R1.5bn Combined Revenue: The portfolio companies under nReach Capitis Layson have generated a combined revenue exceeding R1.5 billion.
  • Over 75 Years Collective Asset Management Experience: The team brings a wealth of experience, amassing over 75 years of collective asset management expertise.
  • +20% Compounding Annual Growth Rate (CAGR): The portfolio companies boast an impressive +20% compounding annual growth rate in revenues.
  • R2 Billion Investor Capital Under Management (AUM): Managing a substantial R2 billion in investor capital, nReach Capitis Layson has established itself as a significant player in the market.
  • 1,500 Jobs Created or Sustained: The company’s investments have contributed to the creation and sustenance of 1,500 jobs, aligning with its commitment to SMEs and economic prosperity.
  • 6x Portfolio Companies on Track for R1 Billion Valuations: Six portfolio companies are on a trajectory towards reaching valuations of R1 billion, showcasing the success of nReach Capitis Layson’s investment strategy.

Industry Recognition

nReach Capitis Layson’s accolades and “1st to Market” evidence further validate its leadership in the industry:

  • Founding Members of the 12J Industry Association: The company played a pivotal role as a founding member of the 12J Industry Association, showcasing its commitment to industry development.
  • Member of SAVCA’s Impact Investing Interest Group: Active participation in SAVCA’s Impact Investing Interest Group underscores nReach Capitis Layson’s dedication to impactful investing.
  • Incorporation of PE & PD into CIS/Unit Trusts: The company’s ability to incorporate Private Equity (PE) and Private Debt (PD) into Collective Investment Schemes (CIS) and Unit Trusts demonstrates its adaptability and innovation.
  • Enterprise & Supplier Development Spend: nReach Capitis Layson stands out as one of the few asset managers attracting and managing “Enterprise & Supplier Development Spend” from corporate South African companies, complying with BEE legislation.
  • Merging of 3x 12J Asset Managers: The successful merging of three Section 12J Asset Managers showcases the company’s strategic acumen in navigating complex transactions.
  • Launch of nReach Capitis IP Worldwide Flexible Fund: The introduction of the nReach Capitis IP Worldwide Flexible Fund reflects the company’s commitment to expanding its product offerings.

Conclusion

In essence, nReach Capitis Layson emerges as a trailblazer in alternative asset management, driven by a commitment to accessibility, a diverse portfolio, and a unique CFY methodology. The company’s advantages lie in its pioneering initiatives, strategic partnerships, experienced team, positive impact on SMEs, and a transparent approach to investing.

While challenges such as perception hurdles and a learning curve for the CFY methodology exist, the company’s track record speaks to its financial prowess and industry leadership. Recognitions, industry firsts, and positive testimonials from clients underscore the impact nReach Capitis Layson has had on both the financial and business landscape.

In contemplating an investment with nReach Capitis Layson, investors are presented not only with a financial opportunity but a chance to be part of an innovative force shaping the future of alternative asset management. As with any investment decision, thorough research, understanding, and consultation with financial advisors are recommended. nReach Capitis Layson stands poised to continue its trajectory of growth and positive impact on the financial industry.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo