Newly Launched Permuto Capital Announces Filing of Registration Statement for New Type of Equity Product
Permuto Capital has filed a registration statement with the SEC for a new type of equity product through a voting trust investment vehicle. The trust will initially hold Microsoft (MSFT) common stock and issue two types of certificates: dividend certificates and appreciation certificates, representing the dividend and capital appreciation portions of the underlying stock respectively.
These certificates will trade separately, allowing investors to choose their exposure. Certificate holders can trade through either The Depository Trust Company or the Chia blockchain. The trust plans to limit holdings to 10% of MSFT's outstanding shares. Only qualified institutional buyers and accredited investors can initially deposit shares, but secondary market trading will be open to all investors.
Certificate holders will have voting rights proportionate to trading prices. Permuto will charge transaction fees for deposits and redemptions, plus a fee based on distributions to dividend certificates. The trust will not receive cash proceeds from certificate issuance.
Permuto Capital ha presentato una dichiarazione di registrazione presso la SEC per un nuovo tipo di prodotto azionario attraverso un veicolo di investimento in fiducia. La fiducia detiene inizialmente azioni ordinarie di Microsoft (MSFT) e emette due tipi di certificati: certificati di dividendo e certificati di apprezzamento, che rappresentano rispettivamente le parti di dividendo e apprezzamento del capitale delle azioni sottostanti.
Questi certificati verranno scambiati separatamente, consentendo agli investitori di scegliere la loro esposizione. I detentori di certificati possono negoziare tramite The Depository Trust Company o la blockchain Chia. La fiducia prevede di limitare le partecipazioni al 10% delle azioni in circolazione di MSFT. Solo i compratori istituzionali qualificati e gli investitori accreditati possono inizialmente depositare azioni, ma il trading sul mercato secondario sarà aperto a tutti gli investitori.
I detentori di certificati avranno diritti di voto proporzionati ai prezzi di negoziazione. Permuto addebiterà commissioni di transazione per i depositi e i riscatti, oltre a una commissione basata sulle distribuzioni ai certificati di dividendo. La fiducia non riceverà proventi in contante dall'emissione dei certificati.
Permuto Capital ha presentado una declaración de registro ante la SEC para un nuevo tipo de producto de capital a través de un vehículo de inversión en fideicomiso de votación. El fideicomiso inicialmente poseerá acciones ordinarias de Microsoft (MSFT) y emitirá dos tipos de certificados: certificados de dividendos y certificados de apreciación, que representan respectivamente las partes de dividendos y de apreciación de capital de las acciones subyacentes.
Estos certificados se negociarán por separado, lo que permitirá a los inversores elegir su exposición. Los tenedores de certificados pueden comerciar a través de The Depository Trust Company o la blockchain Chia. El fideicomiso planea limitar las tenencias al 10% de las acciones en circulación de MSFT. Solo los compradores institucionales calificados y los inversores acreditados pueden depositar acciones inicialmente, pero el comercio en el mercado secundario estará abierto a todos los inversores.
Los tenedores de certificados tendrán derechos de voto proporcionales a los precios de negociación. Permuto cobrará tarifas de transacción por los depósitos y los reembolsos, además de una tarifa basada en las distribuciones a los certificados de dividendos. El fideicomiso no recibirá ingresos en efectivo de la emisión de certificados.
Permuto Capital는 SEC에 투표 신탁 투자 수단을 통해 새로운 유형의 주식 상품에 대한 등록 성명을 제출했습니다. 이 신탁은 초기에는 Microsoft (MSFT)의 보통 주식을 보유하고, 배당금 인증서와 자본 상승 인증서라는 두 가지 유형의 인증서를 발행하여 각각 기본 주식의 배당금과 자본 상승 부분을 나타냅니다.
이 인증서는 별도로 거래되어 투자자들이 노출을 선택할 수 있습니다. 인증서 소지자는 The Depository Trust Company 또는 Chia 블록체인을 통해 거래할 수 있습니다. 신탁은 MSFT의 유통 주식의 10%로 보유를 제한할 계획입니다. 자격을 갖춘 기관 투자자와 인증된 투자자만 최초로 주식을 예치할 수 있으며, 그러나 2차 시장 거래는 모든 투자자에게 개방됩니다.
인증서 소지자는 거래 가격에 비례하는 의결권을 갖게 됩니다. Permuto는 예치 및 환매에 대해 거래 수수료를 청구하고, 배당금 인증서에 대한 분배 기준으로 수수료를 부과합니다. 신탁은 인증서 발행에서 현금 수익을 받지 않습니다.
Permuto Capital a déposé une déclaration d'enregistrement auprès de la SEC pour un nouveau type de produit en capital via un véhicule d'investissement en fiducie de vote. La fiducie détiendra initialement des actions ordinaires de Microsoft (MSFT) et émettra deux types de certificats : des certificats de dividende et des certificats d'appréciation, représentant respectivement les portions de dividende et d'appréciation du capital des actions sous-jacentes.
Ces certificats seront négociés séparément, permettant aux investisseurs de choisir leur exposition. Les détenteurs de certificats peuvent échanger via la Depository Trust Company ou la blockchain Chia. La fiducie prévoit de limiter les participations à 10 % des actions en circulation de MSFT. Seuls les acheteurs institutionnels qualifiés et les investisseurs accrédités peuvent initialement déposer des actions, mais le trading sur le marché secondaire sera ouvert à tous les investisseurs.
Les détenteurs de certificats auront des droits de vote proportionnels aux prix de trading. Permuto facturera des frais de transaction pour les dépôts et les rachats, ainsi qu'un frais basé sur les distributions aux certificats de dividende. La fiducie ne recevra pas de produits en espèces de l'émission de certificats.
Permuto Capital hat eine Registrierungserklärung bei der SEC für eine neue Art von Eigenkapitalprodukt über ein Abstimmungstrust-Investitionsvehikel eingereicht. Der Trust wird anfänglich Microsoft (MSFT) Stammaktien halten und zwei Arten von Zertifikaten ausgeben: Dividendenzertifikate und Wertsteigerungszertifikate, die jeweils den Dividenden- und den Kapitalwertanteil der zugrunde liegenden Aktie darstellen.
Diese Zertifikate können separat gehandelt werden, sodass Investoren ihre Exposition wählen können. Zertifikatsinhaber können entweder über die Depository Trust Company oder die Chia-Blockchain handeln. Der Trust plant, die Bestände auf 10 % der ausgegebenen Aktien von MSFT zu begrenzen. Nur qualifizierte institutionelle Käufer und akkreditierte Investoren können zunächst Aktien einzahlen, aber der Handel im Sekundärmarkt wird für alle Investoren geöffnet sein.
Zertifikatsinhaber haben Stimmrechte, die proportional zu den Handelspreisen sind. Permuto erhebt Transaktionsgebühren für Einzahlungen und Rückkäufe sowie eine Gebühr, die auf den Ausschüttungen an Dividendenzertifikate basiert. Der Trust erhält keine Bargeldmittel aus der Ausgabe der Zertifikate.
- Innovative product allowing investors to separately trade dividend and capital appreciation components of MSFT stock
- 24/7 trading capability through blockchain technology
- Voting rights pass-through to certificate holders
- Open secondary market trading for all investors
- Initial participation to qualified institutional buyers and accredited investors
- Trust administrator fees on transactions and dividend distributions
- 10% ownership cap of underlying MSFT shares
Insights
This groundbreaking financial product introduces a novel way to decompose Microsoft stock ownership into two distinct components - dividend rights and capital appreciation exposure. The structure allows investors to gain targeted exposure to specific return drivers, effectively creating a new asset class within equity markets.
The innovation lies in several key features:
- Separate trading of dividend and appreciation certificates, enabling precise portfolio customization
- Blockchain integration through Chia for 24/7 trading and reduced operational costs
- Pass-through voting rights weighted by certificate market prices
- 10% cap on underlying MSFT shares to limit market impact
This product could particularly appeal to income-focused investors seeking stable dividend streams separate from growth exposure, or growth investors who prefer to avoid dividend tax implications. The potential for enhanced liquidity and reduced friction through blockchain integration represents a significant step toward modernizing traditional equity markets.
The structural implications of this product are profound for market microstructure and price discovery. By unbundling dividend rights from capital appreciation, we may see more efficient pricing of these distinct components of equity returns. This could lead to:
- More accurate forward dividend expectations reflected in dividend certificate prices
- Clearer isolation of growth premiums in appreciation certificates
- Enhanced ability to implement sophisticated relative value trades
The dual-trading venue approach (traditional DTC vs. Chia blockchain) creates an interesting arbitrage mechanism that could improve price efficiency. However, the 10% ownership cap and initial restriction to qualified investors may limit immediate market impact. The success of this product could pave the way for similar structures across other large-cap stocks, potentially transforming how investors access and trade equity exposure.
Product to separate the equity and dividend components of a stock and pass-through voting rights
The product will consist of certificates issued by the Trust, which is formed solely to hold a single class of stock of a specified publicly traded company. This first Trust will be established to hold shares of common stock of Microsoft Corporation (NASDAQ: MSFT).
The certificates will consist of “dividend certificates” and “appreciation certificates” that represent the dividend portion and the capital appreciation portion, respectively, of the underlying stock. The two types of certificates would not be attached or stapled together, and are expected to trade separately, so that a holder could choose to hold one type of certificate or both types of certificates. It is expected that holders of certificates will have the ability to choose whether to hold, and trade, their certificates through either the facilities of The Depository Trust Company or the Chia blockchain.
“Permuto will enable investors to obtain direct exposure to the capital appreciation and dividend components of public equities,” said Trent Martensen, Co-CEO Permuto Capital. “We want to give all investors–from the largest financial institutions to individual investors–access to innovative assets that enhance the flexibility and granularity of their investment strategies without taking on unnecessary risks.”
Permuto also intends to apply to have both the dividend certificates and the appreciation certificates listed on a nationally recognized stock exchange.
Holders of certificates will have the right to instruct the trust administrator as to how to vote the underlying stock on each matter submitted to shareholders of the subject corporation, with each certificate type’s proportionate vote based on the relative trading prices of the certificates over a specified period.
“Chia blockchain technology is the linchpin to drive the increased value and efficiency for these assets,” said Gene Hoffman, Co-CEO of Permuto Capital and CEO of Chia Network. “Permuto’s offering lowers operational costs, simplifies administration, and passes fee efficiencies back to the investors, while enabling an unmatched and highly efficient vehicle for unbundled value delivery in One Market–a more frictionless and trustless market that trades 24 hours a day, 7 days a week.”
The Trust will not receive any cash proceeds from the issuance of the certificates. The certificates will be created by the Trust and initially issued to holders in exchange for those holders depositing with a custodian, on behalf of the Trust, shares of the underlying stock. Holders will receive one dividend certificate and one appreciation certificate in exchange for depositing one share of the underlying stock. Permuto currently plans to limit the Trust’s holdings to no more than
Only “eligible holders” (defined as “qualified institutional buyers” or “accredited investors” that meet certain requirements) will be able to deposit shares of the underlying stock into the Trust and initially receive certificates. However, the ability to acquire certificates after initial issuance in the secondary market will be available to all investors.
The certificates do not have a fixed maturity date. However, eligible holders will have the right to redeem one dividend certificate and one appreciation certificate in exchange for one share of the underlying stock held by the Trust, subject to the satisfaction of certain requirements.
Permuto, as the trust administrator, will receive a transaction fee upon deposits and redemptions from the Trust, and a fee based on a percentage of distributions made by the Trust to the dividend certificates, but will not receive any fees based on the assets of the Trust.
The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus related to this offering, when available, may be obtained by email at info@permuto.capital.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or other terms of the offering.
About Permuto Capital
Permuto, based in
About 3V Capital Partners SE LLC
3V Capital Partners focuses on the democratization of innovative financial solutions that were traditionally only offered to qualified institutional buyers and carried significant fee drag. 3V Capital Partners utilizes cutting edge technology and rigid risk management standards to ensure our products carry the lowest possible fee for investors and minimize counterparty risk. Founded by a team of technology-focused investment bankers, the firm seeks to innovate financial markets and enable investors to better manage risk and customize exposure to public securities.
About Chia Network Inc
Chia Network delivers software to enable enterprises to tokenize, custody, and trade any asset, while ensuring auditable authenticity and provenance. Created by Bram Cohen, the inventor of BitTorrent, the underlying open source, public Chia blockchain provides the secure and regulatory-compliant infrastructure for One Market.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250114592626/en/
FTI Consulting
Dan Margolis and Brian Waldman
E: Chia@FTIconsulting.com
Source: Chia Network Inc.
FAQ
How does Permuto Capital's new MSFT stock certificate system work?
What are the trading restrictions for Permuto's MSFT certificates?
What fees does Permuto charge for MSFT stock certificates?
How do voting rights work with Permuto's MSFT certificates?
What is the maximum amount of MSFT shares Permuto's trust can hold?
