Aditum Alts Files Enhanced Patent on Private Market Fund Innovations

News provided by

Aditum Alternatives

Oct 08, 2019, 07:23 ET

RANCHO SANTA FE, Calif., Oct. 8, 2019 /PRNewswire/ -- Aditum Alternatives announced today the filing of a continuation to a patent application ("Electronic System and Method for Administering a Co-Mingled Illiquid Private Market Investment Fund"). This latest filing enhances ground-breaking features developed to expand access to private market strategies by individuals and institutional investors, such as 401k plans. The pending patent, which includes both novel investment product structures and enabling technology, is known commercially as the Aditum Aqueduct and was extended to:

  • Provide specific individual and institutional mechanisms for investor liquidity
  • Improve the potential for tax efficiency
  • Comport with pending SEC Rule 12d1-4, intended to expand a registered closed end fund's investment flexibility

"These enhancements are consistent with both SEC Chairman Clayton's call for a new fund structure for ordinary investors, and our response to the SEC Concept Release on Offering Exemptions," said Ken McGuire, President of Aditum Alternatives and Aditum Asset Management.

He added, "Aditum Asset Management plans to launch a closed-end, perpetual, private market fund incorporating Aditum Aqueduct features for individual investors and a similar fund for institutional investors, such as Collective Investment Trusts utilized by 401k plans. In advance of these launches, Aditum Asset Management plans to request SEC exemptive relief, including forms of relief previously granted and expansions of forms previously granted to others. We expect that our example will encourage other asset managers to license and adopt the Aditum Aqueduct for use in their own private market product offerings."

Key features of the Aditum Aqueduct include:

  • Collective, adviser managed, individual investor liquidity via the institutional secondary market, and
  • Direct and/or indirect investor control of liquid assets, thereby eliminating "cash drag" without requiring over-commitment and its attendant risks

About the Aditum Companies

Aditum Alternatives LLC was founded in 2017 to advise asset managers. Aditum Asset Management LLC was founded in 2019 to sponsor investment products. Both are focused on "expanding access to non-traditional investments."

Disclosure

The information herein does not constitute an offer to sell, or a recommendation to buy any security or any other product or service by Aditum Alternatives or Aditum Asset Management regardless of whether such security, product or service is referenced. Furthermore, nothing herein is intended to provide investment advice and nothing herein should be construed as a recommendation to engage in any investment strategy.

SOURCE Aditum Alternatives

Related Links

http://aditumalts.com

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