Fund share securitization gives investors access to a fund through a security. The fund interest is taken up by a ring-fenced compartment inside a Luxembourg SPV, and the note it issues carries its own ISIN, so an investor can subscribe through their existing custodian instead of onboarding with the fund directly.
Reaching a fund normally means onboarding with it: its documentation, its minimum, its timetable. MTCM structures a feeder compartment inside one of its six Luxembourg SPVs, ring-fenced from every other deal, and the note issued from it carries an ISIN of its own. The compartment subscribes once; the investors hold a note. Distribution runs through the channels a wealth manager or private bank already uses. It is constituted under the Luxembourg Securitization Law of 22 March 2004, bankruptcy remote in both directions, and stays off the distributor’s balance sheet. The platform is advised by GSK Stockmann, and the audit falls to PwC and Atwell.
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.
A compartment holding an interest in one identified fund.
Commitments to funds with a fixed term and a defined drawdown schedule.
Interests in funds permitting ongoing subscription and redemption.
Limited partner commitments in private equity, debt or infrastructure funds.
Interests acquired from an existing holder before the fund’s term ends.
Access to funds with a defined sector or geographic focus.
A defined allocation across several identified funds, in one compartment.
Several investors reaching a fund minimum through a single compartment.
Access to a fund denominated in a currency the investors do not hold.
Access where the fund’s own distribution arrangements do not reach the investor’s market.
It gives investors access to a fund through a security. A feeder compartment inside a Luxembourg SPV, ring-fenced from every other deal, holds the fund interest and issues a note under its own ISIN, so an investor can subscribe through their existing custodian rather than onboarding with the fund directly.
A compartment that subscribes to a target fund and issues notes against that interest. It sits between the fund and the investors, so the fund receives one subscription and the investors hold a security their custodian recognises.
No. The note can only work within the terms of the underlying fund. If the fund is closed-ended, the compartment cannot create redemption that does not exist. What the note changes is how the position is held and transferred, not the fund’s own terms.
The originator or distributor identifies the target fund when the compartment is structured. There is no discretionary mandate: the compartment holds the interest it was set up to hold. MTCM structures and administers it and does not manage third-party capital.
Yes. The compartment subscribes once at the fund’s minimum, and issues notes in denominations sized for the intended investors. Each investor holds a note rather than a direct interest in the fund.
Wealth managers, external asset managers and private banks that want to give clients access to a fund through their existing channels, and fund managers seeking distribution through intermediaries without onboarding every end investor.
| Subscribing to the fund directly | Holding a note from a compartment | |
|---|---|---|
| Onboarding | Each investor onboards with the fund | The compartment onboards once |
| Minimum ticket | Set by the fund | Note denomination set at structuring |
| Custody | Depends on whether the custodian holds fund units | An ISIN, held like any security |
| Reporting | From the fund, to each investor | From the compartment, aligned with the fund |
| Redemption | On the fund’s own terms | Through the note terms, which reflect the fund’s terms |
The compartment does not change the underlying fund’s terms. Redemption through the note can only work within what the fund itself permits.
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.