At MarketX Ventures, we believe in democratizing access to private market opportunities, traditionally reserved for sophisticated investors. We understand the complexities of the private market and have designed a streamlined process to make investing in highly and rapidly growing companies more accessible.
Why Private Market Opportunities Should be Part of Everyone’s Portfolio Allocation?
Including private market opportunities in one's portfolio allocation can offer several compelling advantages:
Firstly, these investments allow individuals to access potentially high-growth companies before they go public. By getting in early, investors can capitalize on the potential for substantial returns as these companies expand and their valuations increase.
Secondly, private market investments provide a chance to diversify one's portfolio beyond traditional asset classes such as stocks and bonds. This diversification can help mitigate risk and enhance overall portfolio performance.
Additionally, participating in private market opportunities allows investors to align their investments with their personal interests or beliefs, supporting innovative companies or industries they believe in.
Lastly, private market investments can offer unique networking and learning opportunities. Engaging with early-stage companies and their founders can provide valuable insights and connections that may not be available through traditional investment avenues.
Considering these benefits, including private market opportunities in one's portfolio allocation can be a strategic move towards maximizing investment potential and expanding investment horizons.
Investing through Special Purpose Vehicles (SPVs)
All investments made through MarketX Ventures are facilitated via Special Purpose Vehicles. An SPV is a legal entity created for a specific purpose — in our case, to pool together investments from multiple investors for a single investment opportunity. This structure allows our investors to gain exposure to a particular private company without the need to directly engage with the company.
When you invest in a private company via an SPV with MarketX Ventures, you become a member of a fund that provides exposure to the company's shares.
Each investor owns an interest in the SPV’s assets proportionally to the value of the capital they invested.
Role of the Fund Manager
The SPV is administered by a fund manager who handles the day-to-day operations, legal, accounting, and reporting. The manager leverages the expertise of investment advisors to analyze the private markets, identify potential investment targets, and track the performance of the portfolio company.
The manager initiates the process of SPV creation, facilitates negotiations with counterparties on prices and deal sizes, and ensures compliance with Know Your Customer (KYC) procedures. The manager is supported by an independent fund administrator, external legal counsel, and other consultants and advisors.
Importance of a Fund Administrator
Each SPV operation is overseen by an independent administrator who prepares reports on the fund's performance, conducts Anti-Money Laundering (AML) checks, and assists the fund in performing any necessary additional due diligence.
An Easy Process for Accredited Investors
At MarketX Ventures, we welcome accredited investors to become members of an SPV.
To qualify, you must meet one of the following criteria:
your annual income for each of the prior two years should exceed $200,000 ($300,000 for joint income);
your net worth should be at least $1 million (excluding primary residence) or;
you should hold at least one license of FINRA’s Series 7, 65, or 82
Investors sign a subscription agreement with an SPV and transfer funds to its bank account. Once all investors transfer their funds, the manager proceeds with signing a purchase agreement with the sellers of private equities and transfers the purchase price to them.
The Most Optimal Investment Structure for Investors
After the transaction, the balance of each SPV contains shares of a private company or a stake in a fund that owns the shares of the company. Each investor owns an interest in the SPV’s assets proportionally to the value of the invested capital.
At MarketX Ventures, we always seek the optimal ownership structure for our investors. In certain cases, when direct ownership of shares is unavailable due to restrictions of a private company, we consider alternative ways of equity exposure, such as double or multiple-layer SPV partnerships or forward agreements. In these cases, investors get indirect access to the company.
Investing in private market companies can be a rewarding venture, and we are here to make this process as seamless as possible. Our team of experts is always ready to guide you through the investment process and help you unlock the potential of private market investments.
What Happens During the Life of the Investment?
During the life of an investment with us, investors can expect a range of benefits and services that enhance their experience and provide ongoing support. MarketX Ventures is committed to keeping investors informed and engaged throughout the investment journey.
Regular Reporting and Updates:
MarketX Ventures understands the importance of transparency and communication. Investors can rely on MX to regularly update them on the performance of their investment and the progress of the underlying company. Through comprehensive reports and updates, investors gain valuable insights into the growth and development of their portfolios.
Exclusive Investment Opportunities:
As members of the MarketX club, investors gain a significant advantage. They are given priority access and receive firsthand information about new investment opportunities.
MarketX Ventures offers its investors the opportunity to explore and consider new investments before they become available to the general public. This exclusive access allows investors to potentially capitalize on emerging trends and promising companies.
Liquidity Opportunities:
MarketX Ventures recognizes that investors may have changing circumstances or financial needs. To address this, MarketX Ventures strives to provide liquidity options whenever possible. In the event that investors wish to sell their shares of the SPV, MarketX Ventures assists in facilitating a smooth process.
By offering regular reporting, exclusive investment opportunities, and liquidity options, MarketX Ventures ensures that investors receive ongoing support and value throughout the life of their investment. Our team is dedicated to maximizing investor satisfaction and helping them unlock the full potential of their private market investments.
