TL;DR
- Investcorp and Securitize partner to tokenize funds on the blockchain.
- The initiative will initially focus on Investcorp Strategic Capital Group (ISCG).
- This collaboration democratizes access to GP staking investment strategies.
Investcorp, a leading alternative investment firm, and Securitize, a pioneer in real-world asset (RWA) tokenization, have announced a strategic partnership to explore fund tokenization opportunities.
This project will initially focus on Investcorp Strategic Capital Group (ISCG), which specializes in acquiring minority stakes in alternative asset managers (GPs).
Securitize is proud to announce that we have partnered with @Investcorp to explore fund tokenization opportunities within Investcorp's Strategic Capital Group (ISCG).
ISCG is focused on acquiring minority interests in alternative asset managers, a strategy known as GP staking.… pic.twitter.com/Arx4tD4xmI
— Securitize (@Securitize) June 26, 2024
ISCG, which manages approximately $1.5 billion in assets and has completed 12 investments since launching in 2019, has emerged as one of the most active investors in GP holdings.
The use of tokenization technology has the potential to increase efficiency for investors and open a new era of accessibility.
Anthony Maniscalco, Managing Partner of ISCG, stated that this collaboration with Securitize continues Investcorp‘s strong tradition as an innovator in alternative investments.
Tokenization not only simplifies and streamlines investment processes, but also allows a wider range of investors to access GP staking investment strategies, which were previously reserved for a select group.
The asset tokenization will be managed by Securitize‘s digital transfer agent and offered through its digital asset management arm, Securitize Capital.
The tokenized funds will be available for investment on Securitize Markets, the firm’s broker-dealer platform.
According to Carlos Domingo, co-founder and CEO of Securitize, tokenizing alternative assets breaks down barriers and allows individual investors to participate in previously unattainable opportunities.
This partnership not only promises to revolutionize the way investors access private markets, but also underscores both firms commitment to technological innovation and the democratization of financial opportunities like RWAs.
Tim Osnabrug, partner at ISCG, added that they are excited to introduce this ecosystem to both their current and future partners, as part of their development and value-added toolkit for GPs.
Innovation in the world of alternative investments and RWA
Tokenization represents a significant change in the way financial assets are managed and distributed.
Using the blockchain, tokenization enables fractional ownership of assets, increasing liquidity and providing greater flexibility to investors.
This development is especially relevant in the context of GP staking strategies, where investors earn returns through a combination of high cash returns via a portion of GP management fees and earned interest, as well as growth of GP assets.
Investcorp, since its creation in 1982, has been at the forefront of innovation in alternative investments.
The firm specializes in various asset classes, including private equity, real estate, credit and liquid strategies.
With $52 billion in assets under management, Investcorp is dedicated to generating attractive returns for its clients and creating long-term value in its portfolio companies.
The partnership with Securitize is a natural extension of its focus on innovative solutions and its commitment to sustainability and creating value in the communities where it operates.
For its part, Securitize has been a leader in the digitization of financial assets through blockchain technology.
With a wide range of services, including a primary market and an alternative trading system, Securitize is positioned as a key player in the transformation of traditional financial markets.
This collaboration between Investcorp and Securitize not only highlights the importance of technology in modernizing finance, but also exemplifies how strategic partnerships can open new avenues of growth and access in the world of alternative investments including RWA.
