Private Equity

Private Equity.

At MTCM, we facilitate innovative solutions for securitizing private equity investments through Special Purpose Vehicles (SPVs). This approach allows investors to access private equity opportunities across various industries and sectors by purchasing securities issued by our SPVs.

Securitization Process of Private Equity.

Our securitization SPVs can acquire a wide range of private equity investments, manage associated risks, and issue securities to investors for generating returns:

Risk Acquisition

The SPV acquires risks linked to private equity investments, targeting specific companies or ventures within industries or sectors.

Security Issuance

The SPV issues securities to investors. The proceeds from these securities are invested into the target deal or company.

Income Generation

The SPV receives dividends or realizes capital gains upon the disposal of the company. This income is then used to provide returns to investors, secured by the yield generated from the private equity investments.

Due Diligence

Comprehensive due diligence is conducted on target companies or ventures to assess their financial health, growth potential, and alignment with investment objectives.

Structuring the Deal

The investment structure is defined, including equity stakes, debt instruments, and any other financial arrangements tailored to maximize returns and manage risks.

Legal and Regulatory Compliance

All legal and regulatory requirements are addressed to ensure the securitization process adheres to relevant laws and standards, providing protection to both the SPV and investors.

Fundraising

The SPV engages in fundraising activities to attract investors, providing detailed information about the investment opportunities and potential returns.

Asset Management

Active management of the private equity investments is carried out, including strategic oversight and operational improvements to enhance value.

Monitoring and Reporting

Regular monitoring of the investment performance is conducted, with detailed reports provided to investors to maintain transparency and inform decision-making.

Exit Strategy

A clear exit strategy is established, outlining the methods and timing for divesting from the investments, such as through mergers, acquisitions, or public offerings, to maximize returns for investors.

Investment Opportunities with Private Equity:

Direct Investment:

The SPV invests directly in target companies, either acquiring stakes or participating in business activities.

Fractional Investment:

The SPV can fraction larger investments, making them accessible to a broader range of investors.

Fund Participation:

The SPV may issue notes or certificates representing shares or units of investment funds in private equity, making these investments more accessible and tradable.

Example Structure of Private Equity Securitization:

Formation of SPV:

Establish the SPV to acquire private equity assets.

Security Issuance:

Issue securities to investors, linked to the acquired private equity assets.

Income Distribution:

Distribute dividends or capital gains to investors based on the performance of the underlying assets.

Trading and Liquidity:

Securities are provided with ISINs and traded on global clearance and settlement platforms.

Key Features of Private Equity Securitization:

Income and Capital Gains:

Investors receive returns through dividends or capital gains realized by the SPV.

Bankable Assets:

Securitized private equity investments become tradable, bankable assets, enhancing liquidity.

Global Market Integration:

Securities are integrated into global markets, facilitating efficient trade and settlement.

Key Benefits of Private Equity Securitization with MTCM:

Access to Private Equity:

Provides investors with opportunities to participate in private equity deals, often reserved for larger institutional investors.

Diversification:

Allows the creation of a portfolio of private equity investments, reducing risk through diversification.

Liquidity:

Transforms private equity investments into bankable assets that can be traded on global platforms.

Efficient Capital Market Access:

Enables access to global capital markets by providing securities with ISINs, traded through platforms such as Euroclear.