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March 21, 2023

Private Market Capital Deserves Better Data

Stale data does not mean lower beta, it means unknown risk

Private Market Capital Deserves Better Data

Your private market capital deserves better data. Stale data does not mean lower beta, it means unknown risk. Real time access to data, the ability to program surveillance of you alts portfolio is what Inveniam delivers. This is why we believe price discovery is the killer app for blockchain.

The LP community is saying they want two things in this new release by Institutional Limited Partners Association (ILPA)

1) disclosure of all fees/costs being paid by the LPs, and

2) greater transparency of key data so that GPs & LPs can be thoughtful fiduciaries of capital.

Both of these focus on data management and demand that GPs radically improve their data capture and reporting at the portfolio company level. Great quotes from this document...

“By removing certain core items from the negotiating table, such as required cost disclosures (ranked the #1 “must-have” for LPs in negotiations in 2022) and enhanced fiduciary duties (ranked #2), while also providing the desired transparency during the MFN process and protecting the use of side letters (required by 76% of LPs to invest in PE), the market would operate with greater efficiency and LPs would be able to focus negotiations on other critical areas that have shifted in favor of the GP in recent years.“

A digital middle office will deliver this for the GP, but...10 finger automation using Bill Gates 1.0 (Excel) is not scalable for this. A distributed data architecture using a data system browser, looking at data at the edge is the solution for this with surveillance of data at the edge and automating responses to those changes. This is a reality today.

“ILPA believes the proposed PFA rule, when implemented as suggested, offers the opportunity to address persistent challenges experienced by LPs over the last decade. With our broad support of the rule in principle, we believe several aspects will further improve transparency in private markets and foster greater efficiency in the various stages of the investment life cycle between LPs and GPs.”

Tokeny, Goldman Sachs new GS Dapp, U.S. Bank, MUFG Investor Services, Apex Group Ltd, digital solutions will deliver this transparency through the life cycle of the asset and/or fund when sitting on a data platform that automates this compliance. This opens the door for global trading of these assets and funds on platforms like Oasis Pro Markets, ADDX, SDAX, Archax, along with traditional exchanges like Euronext, Nasdaq, and NYSE.

The future is coming, it needs a better data architecture to drive the outcomes that the markets demand. Cushman & WakefieldiAM CapitalInveniamPrologisAztec GroupInvesco USBlackRockAltus GroupKKRAltus GroupJane StreetSS&C TechnologiesMacquarie Asset ManagementPolymathPropy Inc.Anchorage DigitalCoinbaseCoinbase InstitutionalBain & CompanySwarm TechnologiesBinanceAKRURedSwan CREPerella Weinberg PartnersArca

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