Private equity securitization turns an unlisted equity position into a transferable security. MTCM puts the stake into one ring-fenced compartment of a Luxembourg SPV it operates, and the compartment issues a note with its own ISIN, so the exposure can live in custody instead of on a shareholders’ register.
Unlisted equity is hard to book, hard to transfer and hard to value on a client statement. MTCM opens a compartment in one of its six Luxembourg SPVs, ring-fenced from every other deal, moves the position into it, and that compartment issues a note under its own ISIN. The exposure becomes a security a private bank can custody, a wealth manager can allocate and an investor can transfer, without changing who controls the underlying company. Every compartment is bankruptcy remote in both directions, so the position is insulated from the originator’s insolvency and the originator from a default inside the compartment. GSK Stockmann advises on the legal framework of the platform. PwC and Atwell act as auditors.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Minority or majority positions in a single unlisted operating company.
Side-by-side positions alongside a lead sponsor in a specific deal.
Contractual and equity interests in a defined joint venture.
Limited partner interests in private equity funds, held through the compartment.
Stakes in earlier-stage companies, structured with a defined exit horizon.
Equity and shareholder debt in a buyout, structured as one instrument.
Positions acquired from an existing holder seeking an exit before the fund’s term ends.
A single large position divided into notes of a size the intended investors can take.
Shareholder loans, preferred equity and convertibles structured alongside the stake.
Sweet equity and incentive structures held separately from the main position.
Private equity securitization turns an unlisted equity position into a transferable security. The stake goes into a ring-fenced compartment of a Luxembourg SPV; the note issued against it has its own ISIN, so the exposure can be held in custody and transferred like any other security.
No. MTCM is a securitization boutique, not a fund, an asset manager or an investment adviser, and does not manage third-party capital. MTCM structures and administers the compartment. Decisions about the underlying company stay with the originator and the existing shareholders.
Yes. The compartment can issue notes in denominations sized for the intended investor base, so a position that is too large for one holder can be taken by several. The underlying company’s share register is unaffected.
Proceeds from the sale reach the compartment, the note is redeemed according to its terms, and the compartment is closed. The exit mechanics are set when the compartment is structured, not renegotiated at the point of exit.
A fund gathers capital under a discretionary mandate and issues units. A securitization compartment holds a defined position and issues a note under the Luxembourg Securitization Law of 22 March 2004. There is no blind commitment and no discretionary manager: the compartment holds what it was structured to hold.
Wealth managers and private banks that need a custody-eligible wrapper for a client’s unlisted exposure, family offices structuring a co-investment, and sponsors who want to widen access to a deal without adding shareholders to the company.
| Route | How the compartment holds it | When it fits |
|---|---|---|
| Direct | The compartment holds the stake in the company itself | One asset, known counterparties, defined exit |
| Fractional | One position issued as several notes of a smaller denomination | The ticket is too large for the intended investors |
| Fund participation | The compartment holds an LP interest and issues against it | Access to a closed fund through a bankable wrapper |
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.