"Our funds generate alpha by taking advantage of the structural inefficiencies that exist in the banking system..."
Our funds generate alpha by taking advantage of the structural inefficiencies that exist in the banking system. These inefficiencies have always been there and always will, yet they have been exacerbated by the credit crunch, the economic downturn and now by the introduction of Basel III. 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. As a result, 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.
Capital now comes at a premium and the Chrysalis funds are well-placed to assist with efficient and innovative solutions. We offer speed and certainty to those who need to make business decisions, as well as flexibility and a personal relationship. 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.
The Credit Arbitrage Fund was launched in August 2008, and has generated positive monthly returns since inception. The fund offers liquidity on 6 months’ or 12 months' notice.
The Special Opportunities Fund invests in transactions with terms ranging from 3 to 5 years, thus investors are required to have longer time horizons. The attractive opportunity set and superior risk-adjusted returns within this fund, however more than make up for the longer investment period. The fund has generated attractive positive monthly returns since it was launched in August 2011.
The Africa fund invests in 5-year transactions, the primary themes being property-secured finance and growth finance for South African businesses that seek to expand their operations into Africa. It was launched in September 2011 and has generated attractive Dollar returns in the period since inception.
The Property Credit Fund is a closed-end fund that will invest in 3 to 5 year loans secured by large commercial properties, owned and managed by reputable property professionals. The fund will pay out income on a quarterly basis and its returns are expected to be positively correlated to inflation and interest rates.