Press Release: New Venture Fund Provides Investors to the Disrupting Fintech Sector
APPLETON WI, August 17, 2022 – Global Alternative Investment Management LLC (“Global Alts”) has announced the launch of FinTech Fund II which is available to Qualified Purchasers. 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. Such as software and digital services that improve efficiency and speed or decrease costs in the provision of financials services. The Fintech ecosystem includes services as insuretech, regtech, roboadvisory, banktech, digital lending, cybersecurity, digital signature, identity technologies, blockchain, machine learning, AI, and smartcontracts.
FinTech Fund II has raised $1.9 million to date and has deployed initial capital into four investments: a diversified blockchain fund that seeks out venture equity along with early stage and established token investments, a blockchain enterprise focused on developing wireless infrastructure network, a growth equity fund investing in high performing fintech companies, and an automated digital Latam freight enterprise.
“The financial services industry is at a structural inflection point. We believe that the wave of unprecedented regulation and the proliferation of low-cost enabling technologies are providing the necessary catalysts for significant dislocation and democratization of market share,” says Prateek Mehrotra, Chief Investment Officer. In recent years, the fintech industry has innovated 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 usually are more expensive options.” Fintech has and will continue to be life-changing in terms of access, transparency, and convenience. We believe our lives are impacted at an increasing rate 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 impact venture capital and private equity valuations. While public market investors feel the impact of downturns almost immediately the repercussions on private market assets are more complicated. Low interest rates for the past 14 years inflated valuations and investor appetite for more risk. Forced selling by investors that borrowed too heavily or have cash needs may create opportunities in the secondary market, while need for capital in a tightening funding market will cause companies to raise capital at lower prices than previous rounds. In any case, we see the current environment as one that will generate opportunities to acquire the next generation of fintech companies at better prices.
We intend that blockchain technology will make up a sizable portion of the portfolio. We believe blockchain technology enables a pioneering method for information to be shared; the use cases for a transparent, verifiable register of data transactions are endless. The blockchain has the potential to be a significant driver of value creation during our lifetime. The crypto and blockchain sector will continue to see volatility, but the market continues to mature, and with that more institutional and even retail investors are flocking the space. The increasing appetite in crypto should empower and drive start-ups producing a set of unique investment opportunities.
FinTech Fund II is available only to Qualified Purchasers meeting certain income and net worth requirements.
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.
Prateek Mehrotra, MBA, CFA, CAIA®
Managing Member, Chief Investment Officer
Global Alternative Investment Management LLC
Robert Riedl, CPA, CFP®, AWMA®
Global Alternatives Investment Management LLC
Venture capital investing involves risk, including risk of your entire investment and is not suitable for all investors. Different types of investments involve varying degrees of risk, and this fund involves substantial risk of loss, including loss of all capital invested. 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 made in this press release, including the ability to identify and manage investment opportunities. You should not assume that any of the above content serves as the receipt of, or as a substitute for personalized investment advice. Investors should consult with their financial and tax advisors before considering an investment. Past performance may not be indicative of future results. Content herein is not an offering or solicitation to buy securities. This offering can only be made by the private placement memorandum.
Global Alts relies upon 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 subject to the Investment Advisers Act of 1940 and the rules thereunder and is subject to examination by the Securities and Exchange Commission.