New Venture Fund gives investors exposure to the disruptive Fintech sector
APPLETON, Wis., 17 August 2022 /PRNewswire/ — Global Alternative Investment Management LLC (“Global Alts”) has announced the launch of FinTech Fund II available to qualified buyers. The fund’s investment objective is to opportunistically acquire a portfolio of companies and funds that seek to invest and profit from investments in financial technology. For example, software and digital services that improve the efficiency and speed or reduce the costs of the delivery of financial services. The fintech ecosystem includes services such as insuretech, regtech, roboadvisory, banktech, digital lending, cyber security, digital signature, identity technologies, blockchain, machine learning, AI and smart contracts.
FinTech Fund II has left 1.9 million dollars to date and has deployed seed capital in four investments: a diversified blockchain fund that seeks venture stocks alongside early and established token investments, a blockchain company focused on developing wireless infrastructure networks, a growth equity fund that invests in high-performing fintech companies , and an automated digital Latam shipping company.
“The financial industry is at a structural inflection point. We believe that the wave of unprecedented regulation and the proliferation of low-cost enabling technologies provide the necessary catalysts for significant dislocation and democratization of market share,” says Prateek Mehrotra, investment director. In recent years, the fintech industry has been innovating consumer and business applications at a rapid pace. “One of the biggest benefits of fintech is the competition it has introduced into the financial industry. With access to this innovative technology, customers now have an alternative to large organizations and banks, which are usually more expensive options.” Fintech has and will continue to be life-changing in terms of access, transparency and convenience. We believe our lives are increasingly impacted by disruptive technologies created by high-growth companies with innovative ideas that provide investors with unique opportunities.
The market correction in public equity and crypto markets will also affect venture capital and private equity values. While public market investors feel the impact of downturns almost immediately, the consequences for private market assets are more complicated. Low interest rates over the past 14 years increased valuations and investors’ appetite for more risk. Forced sales by investors who have borrowed too much or are in need of cash can create opportunities in the secondary market, while the need for capital in a tighter financing market will lead to companies raising capital at lower prices than previous rounds. Regardless, we see the current environment as one that will generate opportunities to acquire the next generation of fintech companies at better prices.
We intend for blockchain technology to form a significant part of the portfolio. We believe blockchain technology enables a breakthrough method of sharing information; the use cases for a transparent, verifiable record of data transactions are endless. The blockchain has the potential to be a significant driver of value creation in our lifetime. The crypto and blockchain sector will continue to see volatility, but the market continues to mature, and with it, more institutional and even private investors are flocking. The growing appetite in crypto should empower and drive startups that produce a set of unique investment opportunities.
FinTech Fund II is only available to qualified buyers who meet certain income and net worth requirements.
About Global Alternative Investment Management LLC
Global Alts is a private fund management company that creates and markets private funds to serve high net worth individuals (accredited, qualified clients and qualified purchasers), institutional and non-profit investors. In addition, Global Alts can provide and manage private funds for HNW families, endowments and other entities.
For more information visit www.GlobalAlts.com.
Contacts:
Prateek MehrotraMBA, CFA, CAIA®
Managing member, Chief Investment Officer
Global Alternative Investment Management LLC
[email protected]
920.785.6010
Robert RiedlCPA, CFP®AWMA®
Managing member
Global Alternatives Investment Management LLC
[email protected]
920.785.6010
Michael Rottier
920.785.6010
[email protected]
Investment risk with venture capital and private fund investments
Venture capital investments involve risk, including the risk of your entire investment, and are not suitable for all investors. Different types of investments involve different degrees of risk, and this fund involves a significant risk of loss, including loss of all invested capital. There are a significant number of factors that could cause the actual benefits and expectations with respect to the Fund to differ materially from the statements in this press release, including the ability to identify and manage investment opportunities. You should not assume that any of the above content acts as a receipt for, or as a substitute for, personal investment advice. Investors should consult their financial and tax advisors before considering an investment. Past results may not be indicative of future results. The content here is not an offer or solicitation to buy securities. This offer can only be made by the private placement memorandum.
Global Alts relies on the investment adviser registration of Endowment Wealth Management, Inc. based on certain no-action letters issued to the American Bar Association in the past. The activities of Global Alts’ investment advisory activities are governed by the Investment Advisers Act of 1940 and the rules thereunder and are subject to examination by the Securities and Exchange Commission.
SOURCE Global Alternative Investment Management LLC
