Section 12J Venture Capital Company
Pallidus Venture Capital Fund 1 (Pallidus VCC) has been operating since 2016, is a SARS accredited venture capital company (VCC0024) and is currently one of the largest VCCs in South Africa with more than R550-million assets under management, of which R529-million has been deployed into qualifying companies.
Pallidus VCC was set up in line with the Section 12J tax incentive introduced by SARS in 2009, which aims to incentivise investors to provide equity funding to small and medium enterprises, thereby facilitating economic growth and job creation.
The typical investment size ranges from R10-million to R50-million, other than junior mining, where larger investments of up to R150-million can be made.
For more information contact Rolandi van der Westhuizen.
Pallidus has partnered with Ascension Capital Partners who is perfectly placed to participate in transactions where BEE investment is required.
Ascension Capital Partners is a black owned private equity firm that commenced operations in June 2018, with a unique value proposition and competitive advantage of significant deal flow by virtue of their sophisticated and broad network in addition to the illustrious transaction experience of their founding shareholders and directors.
Ascension is able to source opportunities with potentially superior returns, as well as mandates to raise and structure the financing (whether vendor funded, facilitated or third party capital) to build substantial BEE funds that further the objectives of BBBEE in South Africa as well as establishing a reputable black owned fund manager.
Ascension aims to facilitate sustainable black ownership transactions through the following:
- Funding BEE transactions with equity versus debt;
- Maximizing returns for their limited partners whilst furthering the social objective, investing through a black fund manager; and
- Building of a sustainable and reputable black fund management business.
Pallidus owns 50% of A-Trade, a registered broker of 4 Africa Exchange (4AX). A-Trade is an easy-to-use online broking platform that allows retail and institutional investors to invest in securities listed on 4AX.
A-Trade provides its clients with easy account access, mobile share trading and no minimum trading fees for securities listed on 4AX.
A-Trade will soon also expand its service offering to allow its clients to trade in securities listed on other exchanges in South Africa.