Finles Capital Management, an investment boutique with 40 years of experience and €500 million under management, aims to raise €100m for a new cryptocurrency token called FundCoin in the first ever Initial Coin Offering (ICO) for a private equity fund. By investing in the blockchain industry with a diversified portfolio run by professional managers, the fund offers a safe haven for capital growth and preservation in the highly volatile cryptocurrency markets. —
Unlike most ICOs, which use cryptocurrency to raise capital for individual start-ups, this ICO presents an opportunity linked to a high-performance asset class rather than a single company or currency.
FundCoin is currently the only project designed specifically to bridge the gap between Private Equity (PE) and blockchain technology. PE, a $2.5 trillion market, offers higher returns to its investors than any other conventional asset class, but it is normally available only to a handful of privileged investors. Meanwhile, blockchain assets offer exceptional returns, but are still considered high risk by most traditional investors due to their notorious volatility. Following its ICO, FundCoin will invest in blockchain companies and specific blockchain ICOs. In order to ensure long-term sustainability, FundCoin will diversify its portfolio by also investing in more conventional assets (real estate, mezzanine funds, etc.). As a result, Finles Capital is building value in a previously untapped niche.
The Finles approach achieves two key objectives. Firstly, it allows average investors to access PE investment markets, which otherwise require a minimum of $100,000 in capital. Secondly, it provides intermediate liquidity that traditional PE funds lack. Traditional funds usually implement long-term investment strategies - meaning investors are unable to trade their investments efficiently and cannot redeem them. However, ICO investors can exit by selling their coins at an exchange at any time.
All of this is made possible by blockchain technology, which ensures both the freedom and security of these valuable digital assets. FundCoin proposes to use a cryptographically verifiable blockchain token to reflect ownership of its portfolio, consisting of both blockchain investments and traditional private equity opportunities. At the same time, it employs the innovative fundraising mechanism of the ICO to collect the capital required.
Blockchain technology, first introduced in 2009 as the decentralised ledger system that underpins Bitcoin, allows entrepreneurs to build and develop tokens and smart contracts that function with complete credibility. FundCoin will be hosted on the Ethereum blockchain, which is gaining popularity not only for the soaring value of its native cryptocurrency Ether (ETH), but also for its broad and growing application in business and finance.
Advantages for investors:
FundCoin’s implementation of blockchain technology offers several advantages to investors. Because the blockchain is a decentralised ledger system, there is no intermediary organisation to collect fees or impose unnecessary costs. As a result, blockchain transactions do not accrue fees that offset the benefits of investment. Moreover, the continual transparency and accountability of blockchain investments ensure that fund managers are acting in the best interest of their investors and that the fund’s ethics are maintained. The opportunity for low-cost transactions and for full accountability comes without major tradeoffs that would otherwise discourage investors. By taking this approach, FundCoin has tapped that potential to create a useable token that proliferates value.
The Fundcoin ICO campaign will launch on the last week of September 2017, with each FundCoin initially priced at €1.00 each. 70% of the portfolio will be allocated to traditional private investments, with 30% invested across the blockchain industry - a sector projected to grow at 58% CAGR until 2023. The fund is predicted to have an Internal Rate of Return (IRR) of 25%.
Name: MARLIES SONNEVELD
Email: Send Email
Organization: Finles Capital Management
Address: Euclideslaan 151, 3584 BS Utrecht The Netherlands P.O. Box 2600 3500 GP Utrecht The Netherlands
Phone: +31 30 2 974 935
Release ID: 236722