Chrysalis Capital
Investment Services in Cape Town

Our current focus is the private sector credit market, which we believe presents significant opportunities for liquidity providers outside of the banking environment.

Chrysalis Capital offers certainty via an efficient and professional approach to those who need to make business decisions. We have a strong property slant, as we seek to assist reputable and established property players with the necessary capital that will help them take advantage of opportunities and keep growing. Growth and Acquisition finance for corporates in various sectors. The inability of banks to satisfy the demand for credit is a global and growing South African phenomenon. The structural inefficiency of the banking system was exacerbated by the credit crunch in 2008 and the consequent introduction of Basel III, which has required banks to hold more capital against their loan books and more efficiently match assets and liabilities. These changes have severely limited the ability of banks to grow their loan books and have increased pressure on banks to do shorter term, more expensive loans to fewer clients. As a result, many banks no longer offer the growth or acquisition finance solutions that they did a few years ago, because the associated cost of capital is too high. The general trends in banking are slower turnaround times, unpredictable and inconsistent credit decisions and increased pricing, all of which makes financial planning for a business very difficult. So too, the global search for yield is unlikely to dissipate as interest rates remain low. Asset prices remain at overpriced levels and thus to many investors moving down the risk curve to invest in debt makes sense from a risk and yield perspective. The growing opportunity in this asset class, combined with investors’ thirst for inflation-protected yield has since 2008 given rise to exponential growth in credit funds in the US, UK and Europe. Today credit funds and other non-bank lenders backed by pension funds and insurance companies operate where banks no longer can, and play a crucial role in supporting the real economy\. A return which is positively correlated to interest rates and thus provides implied inflation protection\. A return which is not correlated to listed fixed income or equity markets, and thus reduces portfolio volatility. The associated benefit is significantly lower risk of capital loss; and. Access to carefully sourced investment opportunities which are not available to the average investor.