Modernizing the Private Fund Ecosystem is No Easy Task- But a Necessary One.
Access to the most talented human capital in the investment industry is important, but why should it come with such an arduous and dated transactional environment?
Contrast the private fund industry to the alternative ETF markets available through any online trading platform. An investor completes a single account profile, executes digital transactions in one place, obtains balances in one place, and can gain access to liquidity in seconds- either through transaction execution, or utilizing Reg T margin to manage individual liquidity and tax management needs.
Imagine if an investor had to complete a multi-page subscription agreement, submit KYC and AML documentation, and walk into their bank to send a wire to fund every purchase of a public stock or ETF? What if they needed to log on to every one of those companies’ or ETF’s website to obtain the value of their investment?
While we may be among the most sophisticated investors in the investment industry, the current transaction and reporting environment for private funds lacks sufficient technology, liquidity and data security; it is dated, duplicative, highly fragmented, decentralized and paper-intense.
As investors, we need to provide the same qualification and identification information multiple times; transmit and obtain reporting information via multiple administrative access points, and use scanners and email to transmit highly sensitive information. Our ability to make merit-based investment decisions, manage our cash flow and tax obligations, and swiftly capitalize on key investment opportunities is challenged, given that the gap between the liquidity of our private funds’ underlying assets and the liquidity available to us as investors is often too wide.
BridgePort is committed to modernizing the private fund investment experience, through smart technology, key constituent alignment, and a refined and streamlined ecosystem.