In late June Securitize announced a deal with asset manager InvestCorp to tokenize one if its funds. InvestCorp has $52 billion in assets under management (AUM), a little less than one of Securitize’s other clients, BlackRock. However, InvestCorp provides a great example of fractionalization and the so-called ‘democratization’ of investments in private equity.
That doesn’t mean that the average mom and pop can invest in private equity. After all, it’s not a liquid asset. So investment is restricted to qualified investors. However, with a starting ticket of $20,000, it’s a far cry from the typical private equity investment.
Tim Osnabrug, a partner in Investcorp’s Strategic Capital Group (“ISCG”), told the Private Funds CFO magazine that the amount “is substantially lower than typically is required for investors when they come directly into our funds, which is one of the things we find particularly interesting in this partnership because it opens up to a broader array of investors.”
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