Securitize Partners With Onramp to Streamline Private Equity Investing

Rhea-AI Summary

Securitize and Onramp Invest have announced a partnership to tokenize private equity funds, starting with Hamilton Lane's Equity Opportunities Fund V, providing expanded access for investors. This initiative aims to democratize investment opportunities in private equity, traditionally reserved for institutional investors. The integration allows financial advisors to manage diverse portfolios, including digital assets and private equity. Onramp's platform can now offer qualified investors access to tokenized feeder funds, enhancing liquidity and reducing entry barriers. This collaboration signifies a transformative step in private equity investing, potentially allowing a broader range of investors to engage in a lucrative asset class.

Positive

• Tokenization of private equity funds increases accessibility for individual investors.
• Hamilton Lane's Equity Opportunities Fund V offers diversification in mission-critical sectors.
• Securitize's digitization reduces barriers for retail investors to enter the private equity market.

Negative

• Investing in private markets is speculative and risks include potential loss of investment.
• Private investments may be illiquid, limiting the ability to sell without incurring losses.

Integration offers investors tokenized exposure to Hamilton Lane's flagship direct equity fund and empowers financial advisors with frictionless portfolio management

NEW YORK, March 21, 2023 /PRNewswire/ -- Digital securities leader Securitize and digital asset wealth platform Onramp Invest today announced the beginning of broadened and distributed access to tokenized private equity funds from leading investment firms, including Hamilton Lane (NASDAQ: HLNE).

Beginning today and expanding over the coming weeks, at least four private equity feeder funds tokenized by Securitize are expected to be made available to qualified investors via Onramp's platform, which includes RIA firms with combined AUM of over $35 billion.

"Private equity is one of the best-performing asset classes in the world, but participating in that value creation has largely been enjoyed by major institutions, sovereign wealth funds, and university endowments. Securitize gives individual investors access to high-quality, real-world assets, such as private equity, and we are proud to partner with Onramp to extend this access to their community of financial advisors and investors," said Securitize Markets CEO Jay Proffitt.

Private equity has outperformed the S&P 500 by 70% over the last 20 years¹–but entry into these markets has been primarily limited to major institutional investors due to a number of structural barriers. Securitize's ability to fully digitize the process of investing in private equity vehicles, issuing and managing shares, and facilitating potential liquidity, is reducing the barriers for more people to access private equity investments for the first time.

Through the partnership, Onramp's clients will be able to diversify their portfolios with exposure to private markets through a curated roster of feeder funds tokenized by Securitize. One of the first two private equity feeder funds provides access to Hamilton Lane's Equity Opportunities Fund V ("the Fund").

Equity Opportunities Fund V provides investors with diversified exposure to unique and carefully selected deals through an efficient fee structure. The Fund comprises investments in mission-critical businesses across sectors, including software tech, healthcare, consumer discretionary, industrials, and business services, among others. Securitize tokenized the feeder fund on the Polygon blockchain.

In addition, Securitize plans to offer digitized access to two more Hamilton Lane funds in the near future—both of which will be made available to Onramp's community of investors and advisors.

Equipped with newfound access to Securitize's tokenized funds and seamless integration with existing client management software through Onramp, RIAs can holistically manage portfolios across private equity, digital assets, and traditional investments to uniquely optimize wealth strategies for their clients.

"Modern private equity investing started in the 1940s, but due to Depression-era regulations, it has been strictly limited to institutions and the extremely wealthy," stated Eric Ervin, CEO of Onramp Invest. "Now the tokenization of PE funds by Securitize, integrated with Onramp's powerful accessibility, truly transforms the category. For the first time, a much broader range of investors will have the opportunity to evaluate and engage in this historically lucrative asset class."

To see how Securitize and Onramp's integration can help your clients diversify their portfolios, visit: https://onrampinvest.com/onramp-x-securitize-white-paper-lead-gen/

About Securitize
Securitize is the leading platform for expanding access to some of the highest-performing, real-world, private markets asset classes, which have historically been inaccessible to most investors, including private equity, venture capital, fine art, and mature start-ups, consistent with U.S. regulations. Securitize brings together businesses seeking to raise capital and investors seeking potential returns historically found in the private markets, with over 1.2 million investors and 3,000 businesses already connected. Securitize, or through its subsidiaries is an SEC-registered stock transfer agent and registered investment advisor. Securitize Markets and its alternative trading system is SEC registered and a member of FINRA and SIPC. Learn more at http://www.securitize.io.

About Onramp
Onramp is a turn-key digital asset management platform that seamlessly connects traditional and digital asset financial infrastructures. Through Onramp, financial professionals can onboard clients to the digital asset investing ecosystem in minutes, both view held-away accounts and directly invest in digital assets, and access an expanding library of models, indices, and portfolio management services.

Media Contacts
Securitize: Evan Wagner, evan.wagner@securitize.io  
Onramp: Eddie Ranchigoda, press@onrampinvest.com

Disclosures
Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every shareholder. Private investments are generally an illiquid asset class; shareholders cannot sell their funds when they want to without potentially facing high losses. Any discussion of liquidity is purely speculative. Past performance is not indicative of future results.

Blockchain investing involves a degree of risk that can be different from traditional markets. These risks include, but are not limited to, risk of regulatory uncertainty, market adoption, market manipulation, market exiting, price volatility and security risk.

1. Source: McKinsey Global Private Markets Review 2022

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SOURCE Securitize

FAQ

What is the partnership between Securitize and Onramp about?

The partnership aims to tokenize private equity funds, including Hamilton Lane's Equity Opportunities Fund V, to broaden access for individual investors.

What benefits does the tokenization of private equity provide to investors?

Tokenization provides increased access, liquidity, and the ability to diversify portfolios with lower entry barriers.

What sectors does Hamilton Lane's Equity Opportunities Fund V target?

The fund targets mission-critical sectors such as software tech, healthcare, consumer discretionary, industrials, and business services.

What risks are associated with investing in tokenized private equity funds?

Risks include potential investment loss, illiquidity, and factors unique to private market investments.

How does Securitize enhance portfolio management for financial advisors?

Securitize allows financial advisors to manage portfolios seamlessly across private equity, digital assets, and traditional investments.