JALTECH’S VENTURE CAPITAL COMPANY SERVICES

Jaltech - Venture Capital Company Advisory

Jaltech has developed a niche in the South African market in assisting companies, family offices and wealth managers with forming, structuring and administering Section 12J Venture Capital Companies (VCC) as well as fund raising for VCCs.

Jaltech’s extensive professional team (comprising of actuaries, accountants, fund managers, an attorney, a full time risk officer and numerous administration support and sales staff) is well resourced to assist clients interested in forming a VCC or who already have a VCC and require administration, structuring and/or fund raising services.

Currently Jaltech are the market leaders in the industry, administering and structuring many of the active VCCs.

Jaltech’s VCC Advisory Services

VCC Formation And Structuring Services

Jaltech has developed an extensive suite of Section 12J compliant legal agreements, policy documents and processes, drafted and approved by leading law firms. This means that Jaltech has the necessary legal framework in place, which will allow the VCC to have multiple share classes thereby permitting investors to have exposure to a specific investment or multiple investments made by the VCC.

The ideal structure will ensure that the VCC is able to achieve the client’s objectives whilst simultaneously maximizing tax efficiency for the client and potential investors in the VCC.

Once the client selects the ideal structure, Jaltech will assist with preparing and submitting the VCC application to the Financial Services Conduct Authority (FSCA), the South African Revenue Services and the Financial Intelligent Centre, for the registration of the VCC.

This process (depending on the relevant institutions listed above) can take anywhere between 60 to 90 days.

During the registration process, Jaltech’s team will prepare the necessary documentation in order to ensure that the VCC remains compliant, these include (but are not limited to):

• 21 operational registers• 9 policies• Standard Operating Procedures such as how to deal with record keeping, fit and proper requirements etc• FAIS compliant forms

VCC Administration

Once the VCC has been registered and all the legal agreements have been finalised, Jaltech will provide an extensive array of VCC administration services. These services include (but are not limited to) the following:

• maintaining and updating the 21 operational registers and 9 policy documents• appointing and maintaining a key individual with the necessary FAIS Act requirements as required by approved VCCs• managing the VCC in accordance with the FSCA’s requirements• liaising with the compliance officer of the VCC on a regular basis• preparation of monthly management accounts for the VCC• liaising with the VCC’s auditors and providing them with such information as they may require for the purposes of preparing the VCC’s annual financial statements• issuing, management and delivery of share and tax certificates to the shareholders of the VCC• providing the necessary reports on behalf of the VCC to SARS and the FSCA• preparing and submitting PAYE, VAT and all other statutory returns required in respect of the VCC• reporting to investors

Investment Screening Services

In order to ensure that the VCC’s investments are compliant with the legislation, Jaltech plays a lead role in screening investment opportunities. Jaltech will advise the VCC on how to structure a transaction, so that it is compliant with Section 12J legislation. This service includes (but not limited to):

• structuring the potential investments in line with the VCC’s requirements• assessing the financial viability of an investment which will include, developing a financial model for the potential investment• understanding the likelihood of the investment achieving the return on investment required by the VCC’s investors and• in conjunction with legal counsel, ensuring the investment falls within the legislation

Fundraising Services

In order to assist clients with raising finance, Jaltech on the request of the client will appoint a broker consultant who will distribute the investment opportunity to Independent Financial Advisers (IFAs), brokers, high-net-worth individuals and certain financial institutions (Fundraising Service).

Tel: (+27) 11 880 0950 Email: info@jaltech.co.za Address: Unit 19, 1 Melrose Blvd, Melrose Arch

Given Jaltech’s experience in the market, Jaltech is of the view that the Fundraising Service is critical and this is currently undertaken by the majority of the VCCs, which have successfully raised finance in the market. Jaltech has implemented several initiatives to assist clients with attracting the necessary capital from investors. These include the following:

• 12Jmarketplace.co.za - Jaltech during May 2018, launched the first online hosting platform for VCCs. The platform will allow investors to review the various VCCs in the market• 12J Marketplace Investor Conference – During August 2018, Jaltech launched the first Section 12J conference focused on bringing investors and VCCs together. The conference is the first time that VCCs were given the opportunity to present to an audience of IFAs, brokers, high-net-worth individuals and financial institutions• Jaltech has a team of full-time broker consultants with years of experience in raising capital who are available to assist clients with raising finance

VCC Listing

Jaltech has worked extensively with the licensed stock exchange, ZAR X, to offer VCCs the opportunity to list and remain on the exchange at an affordable price. The benefits of listing will allow VCCs access to a larger pool of capital as asset managers, with the relevant authority will be able to invest in VCC shares, this in turn will provide investors with liquidity should they wish to exit the VCC. Jaltech offers clients a comprehensive suite of ZAR X listing services, which include:

• assessing the viability of listing• guidance around the listing process• drafting of a prospectus and• pricing and valuation of the initial public offer

Contact Us

www.jaltech.co.za