Realio and Valentus Capital Management to Tokenize $250 Million Fund

Realio and Valentus Capital Management say they are working together to tokenize a $250 million fund.

Realio is a tech stack for “institutional-grade digital assets. Valentus Capital Management is a private equity firm focused on event-driven and value-oriented investments within the credit sectors and the real estate markets. The partnership is said to be “opening Wall Street’s doors to Main Street, granting mainstream investors access to a digitized claim to a Valentus fund offering.”

The two companies believe that blockchain tech can streamline compliance, reporting and asset management to reduce the hurdle (and cost) for investors to participate in “institutional-grade opportunities.”

Tokens (or digital securities) issued through the Valentus Digital platform provide investors with a claim to the limited partnership interests of a Valentus fund. The investment manager, Valentus Capital Management, anticipates becoming an SEC-registered private equity firm.

Mainstream investors are expected to be able to invest in investments alongside institutions.

The minimum investment threshold for Valentus’ funds is $2.5 million, but via Valentus Digital, investors can join with $10,000.

Valentus said that it 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 an 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,” said 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.”

Derek Boirun, co-founder and CEO of Realio, said that providing “top tier” equity opportunities is something that markets are demanding.

“The benefit also extends to larger investors who will enjoy increased liquidity of the asset.”

Soohuck Chun, former Head of Credit Platform, North America at Hudson Advisors and Advisor to Valentus Digital, added that the next generation Fintech will create avenues for prime investment from a broader market:

 “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.”

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