Frequently asked questions.
Plain answers to the questions we are asked most often about the firm, how assets are held, and who we serve.
+What is MidSquare Capital?
MidSquare Capital is an owner-managed digital asset investment manager based in Cape Town, South Africa. It was founded in 2023 by three former senior executives of Sanlam Investments and applies institutional asset management disciplines to digital assets.
+Is MidSquare regulated?
Yes. MidSquare Capital (Pty) Ltd is an authorised financial services provider (FSP no. 53511), approved by the Financial Sector Conduct Authority of South Africa as a Category II and IIA discretionary investment manager, and is licensed as a crypto asset service provider (CASP).
+What does MidSquare invest in?
MidSquare invests in established, larger capitalisation digital assets and the decentralised finance protocols built around them. Returns come from two sources: appreciation of the assets held, and income earned through DeFi yield generating strategies on decentralised exchange protocols.
+Who holds the assets MidSquare manages?
Digital assets are held with Fireblocks, an institutional digital asset custody platform, in dedicated custodial wallets. Assets are not left on exchanges and are never held personally by the manager.
+Who values the portfolios?
An independent fund administrator values portfolios and strikes net asset values monthly, separately from the investment team.
+Does MidSquare use leverage?
No. MidSquare does not employ leverage or net short exposure in its strategies.
+Can I lose money investing in digital assets?
Yes. Digital assets are a volatile, developing asset class. Short-term losses can be significant, returns are not guaranteed, and capital is at risk. MidSquare's risk disciplines are designed to manage these risks, not to remove them.
+Who can invest with MidSquare?
MidSquare manages investment vehicles and mandates for qualifying investors. Information on these vehicles, including terms and documentation, is available on request and is subject to eligibility verification.
Nothing on this website constitutes an offer or solicitation to the general public.
+Does MidSquare provide financial advice?
No. MidSquare provides discretionary investment management services. It does not provide financial, legal or tax advice. Prospective investors should consult their own advisers before making investment decisions.
+Is MidSquare part of Sanlam or Fairtree?
No. MidSquare is an independent, majority founder-owned firm. Its founders previously served as senior executives of Sanlam Investments. Fairtree Capital holds a minority shareholding acquired in December 2024.