Realio partners with USD250m-plus Valentus Fund to tokenise institutional-grade investment opportunities
Realio, a technology ecosystem for institutional-grade digital assets, has announced a partnership with Valentus Capital Management, which will enable the digitisation 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 USD250 million 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 digitised claim to a Valentus fund offering.
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 digitised 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 specialises in making opportunistic investments based on market-price dislocations, relative value, or securitisation/resecuritisation potential. The minimum investment threshold for Valentus funds is USD2.5M, but through Valentus Digital, investors can join with only USD10,000. 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, emphasising real estate private equity. Realio provides 3rd-party issuance tools to digitise 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 tokenised investment opportunities issued on next-generation public blockchain networks that provide security, scalability, liquidity, and decentralisation. 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 decentralised 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."