Established by Wall Street veterans and blockchain experts, Realio and Valentus’s new SEC-compliant peer-to-peer (p2p) ecosystem (Valentus Digital) seeks to make institutional-quality investments accessible to everyday investors
September 25, 2020 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE) — Realio, the technology ecosystem for institutional-grade digital assets, announces a partnership with Valentus Capital Management. The partnership enables the digitization of an array of private equity opportunities, as well as the issuance of a Valentus Digital platform token. Valentus offerings in the pipeline include a $250M+ investment fund focused on opportunistic investments within the credit sectors and real estate markets. This partnership leads the turning tide in finance that is opening Wall Street’s doors to Main Street, granting mainstream investors access to a digitized claim to a Valentus fund offering.
“We are thrilled to partner with Valentus and kick off Valentus Digital”
Investors seeking institutional-grade opportunities that offer attractive returns often require inside connections and tens of millions of dollars just to gain access to these vehicles run by top-tier managers, such as private equity firms or hedge funds. As such, a select community of large institutions often manages to grow its wealth in a way that more moderately sized investors, such as family offices and individuals, can’t. Blockchain technology is reducing investment minimums by up to 1000x due to compliance and reporting automation. With low barriers to entry and a global community of p2p investors, assets can be bought and sold in ways previously unthinkable in private equity.
Tokens issued through the Valentus Digital platform give holders a digitized claim to the limited partnership interests of a Valentus fund, whose investment manager Valentus Capital Management anticipates becoming an SEC-registered private equity firm. Mainstream investors can now invest in top tier investments alongside institutions. Valentus specializes in making opportunistic investments based on market-price dislocations, relative value, or securitization/resecuritization potential. The minimum investment threshold for Valentus funds is $2.5M, but through Valentus Digital, investors can join with only $10,000. Furthermore, Valentus is considering issuing a Valentus Digital platform token that will provide investors with exposure to the profitability of the general partner (GP) itself. This GP token would propose a rare opportunity for investors to access performance fees and invest alongside the GP over the company’s life.
“Partnering with Realio is an exciting stepping stone,” says Behzad Taufiq, CIO and founder of Valentus Capital Management. “Having a Valentus fund token in this ecosystem will create tradability of the fund that wasn’t available before. Its transparency and flexibility will benefit institutional and retail investors alike, and we are excited to break this new ground.”
Realio is both a technology provider and a fund manager who actively sources investment opportunities across many asset classes, emphasizing real estate private equity. Realio provides 3rd-party issuance tools to digitize assets and raise capital within the network or to use its tech stack as a private white-label solution. Realio’s ecosystem seeks to provide a link between the global retail investment community and cash-generating investment opportunities. It opens up access to previously untapped global capital markets where transactions occur 24/7, instantly, with little-or-no cost, and without borders.
The partnership will facilitate the creation of Valentus Digital, an online portal for tokenized investment opportunities issued on next-generation public blockchain networks that provide security, scalability, liquidity, and decentralization. These digital tokens facilitate greater tradability of the asset while allowing issuers to remove excessive transfer restrictions that are commonplace in the private secondary markets.
“We are thrilled to partner with Valentus and kick off Valentus Digital,” says Derek Boirun, Co-founder and CEO of Realio. “Providing broad, global access to top-tier private equity opportunities is not just the vision for our platform, but also something that the markets are demanding, as evidenced by the surge of capital flowing into blockchain technologies and decentralized finance. The benefit also extends to larger investors who will enjoy increased liquidity of the asset.”
“This next-generation financial technology will create avenues of prime investment for the broader market,” says Soohuck Chun, former Head of Credit Platform, North America at Hudson Advisors and Advisor to Valentus Digital. “In partnership with Realio, through Valentus Digital’s innovative platform, retail and large-scale investors alike will be able to participate in market opportunities which have historically been limited to the institutional space.”
Realio Technology LTD is an end-to-end, blockchain-based SaaS platform for the issuance, investment, and life-cycle management of digital assets. Realio combines access to a decentralized (p2p) exchange with the features of a sophisticated issuance/investment platform to merge enterprise-grade blockchain solutions with institutional-quality investment vehicles. The platform satisfies the need for stringent securities regulations while allowing uniquely democratized access to investment products normally reserved for a select subset of institutional investors.
Valentus Capital Management is a private equity firm focused on event-driven and value-oriented investments within the credit sectors and the real estate markets. The fund is run by Behzad Taufiq, a former executive at Hudson Advisors – the asset manager for the Lone Star Funds private equity firm. Behzad also worked at the private equity firm, Cerberus Capital Management. Behzad left the world of conventional finance to bring his wealth of experience and connections to this new venture, enabling smaller parties to invest alongside larger investors. Valentus anticipates registering with the SEC as a Registered Investment Advisor under the Investment Advisers Act of 1940.
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