Invest Horizon
invest horizon
Release business equity
Invest Horizon is a funding solution designed to help business owners release equity from their business without selling. By combining the asset management services of Merchant West Investments with the asset finance solutions of Merchant West Specialised Finance, Invest Horizon lets shareholders release equity without selling the business.
The solution uses a term loan advanced to your business, secured against an investment held in a Merchant West Investments fund in the name of the shareholder. This converts business value into diversified, globally invested capital, structured for tax efficiency.
How Invest Horizon works
The solution moves through four stages, managed end-to-end by Merchant West:
- Secured loan: We advance a term loan to your business.
- Capital released: The proceeds are distributed to the shareholder(s), which unlocks value without having to sell the business.
- Invested offshore: The capital is invested into global markets through Merchant West Investments.
- Wealth generation: Your portfolio gains exposure to global markets with long-term growth potential.
The solution requires a minimum investment of R5m, offers a loan tenor of up to 60 months, requires no deposit, and is managed end-to-end by Merchant West.
The benefits of investing offshore
Release business equity and unlock several benefits.
Preferential pricing on current and future funding: The solution can be priced at preferential terms, subject to credit approval. Once a meaningful portion of the loan is repaid, the investment itself becomes security for further funding. This opens the door to opportunities beyond the initial transaction.
Tax efficiency: The interest cost should be tax deductible in the business, creating a tax benefit within a well-structured arrangement.
Unlock equity: The structure can help settle shareholder loans and convert those claims into an investment asset. This releases equity while maintaining stability and continuity within the business.
Offshore exposure and diversification: Reduce your exposure to South Africa-specific country risk and hedge against the potential weakening of the ZAR against major currencies, depending on the selected fund.
Flexibility and penalty-free early settlement: The repayment profile can be tailored to your cash flow (monthly, bullet, or a combination) and the loan can be settled early after an initial period, without penalties.
Invest Horizon FAQs
Invest Horizon is a term loan advanced to a business, secured against an investment held in a Merchant West Investments fund in the name of the shareholder. It allows business owners to release equity without selling the business, create a tax-efficient structure, and gain offshore investment exposure, all managed end-to-end by Merchant West.
Unlike a conventional loan, Invest Horizon links financing directly to a global investment. The proceeds are redeployed into an offshore fund, the interest cost should be tax deductible in the business, and once a meaningful portion is repaid, the investment itself can serve as security for further funding on preferential terms.
The solution starts from a minimum investment of R5m, offers a loan tenor of up to 60 months, and requires no deposit. Repayments can be structured monthly, as a bullet, or a combination, tailored to your cash flow. The loan can be settled early after an initial period, without penalties. All terms are subject to credit approval.
Offshore capital is invested in the any of our funds managed by Merchant West Investments' professional team.
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