Inveniam Capital Partners and Rialto Markets Announce Partnership to Further Accelerate Adoption of Middle Market Corporate Capital Raises and Trading of Private Market Securities
Inveniam Capital Partners (Inveniam), and Rialto Markets (Rialto) announced today that Inveniam has made a capital investment in Rialto Markets and will support the burgeoning market with connectivity into its private market data eco-system. Inveniam via Inveniam.io, is the operating system for private market data that drives price discovery and automated waterfall calculations. Rialto Markets' fully functional alternative trading system (ATS) is unlocking secondary trading in the private securities market for retail and accredited investors.
Shari Noonan, Rialto Markets CEO, who is leading this effort, offered, "Trading shares used to be restricted to certain companies that could afford to publicly list on a platform such as the New York Stock Exchange or Nasdaq, but a regulated secondary market for private company shares opens up trading and liquidity, and ultimately, price discovery."
The partnership arrives at a critical juncture for private market companies as in the 10 plus years prior to 2019, capital flowing into capital assets grew at 4 times the pace of public markets. After a down year in 2020, 2021 saw U.S. private markets establish a new highwater mark for fundraising and as a result, more companies are staying private longer or bypassing going public. Additionally, in 2022, the U.S. Securities and Exchange Commission laid out a number of proposals including requirements for registered private funds advisors to distribute quarterly statements to private fund investors with a detailed accounting of all fees and expenses during the reporting period. Also in 2021, the Depository Trust & Clearing Corporation, announced its Digital Securities Management initiative, a platform that will, subject to regulatory approval, "for the first time, provide an industry-wide solution that offers common market infrastructure and standards across private markets."
Concurrently, JP Morgan has embarked on "Project Bloom," a platform intended to match start-ups with accredited investors. BlackRock, the world's largest asset manager, is now advising its clients to consider moving away from the traditional 60/40 portfolio in favor of a 50/30/20 portfolio with 20% going into alternative, private market assets.
Pat O'Meara, founder and CEO of Inveniam, commented on the partnership, "In order for there to be more fluid trading of private market securities, an entire ecosystem must be established. As such, today's agreement with Rialto and Inveniam is an incredible advancement towards building that fully functioning ecosystem. This is great news for middle market companies in search capital and price discovery and is reminiscent of the development of the ECN markets in the '90s."
The integration of Rialto into the Inveniam ecosystem will result in Rialto incorporating various components of digital securities data and real-time market data thereby delivering transparency and trust for market participants. Further, having diverse data flow via Ownera, and the industry's FinP2P open-source routing and settlment protocol that interconnects the private markets seamlessly in a user friendly platform, will give the GPs direct access to better data systems, secondary markets for the exchange of alternative assets, and new novel forms of primary distribution will transform the role of fund administrators. Ownera interconnects asset sources and financial institutions to enable the trade of any digital security, from any source and tokenization platform, using any underlying technology.
Tokeny, an enterprise-grade infrastructure provider that allows companies and financial actors to compliantly issue, transfer, and manage assets on blockchain, enabling them to improve asset liquidity, is also a part of the ecosystem. Tokeny's involvment will allow not only auditable forms of compliance from the security to the investor, but it will also allow real-time surveillance of the underlying assets utilizing Inveniam.io.
For further context on this agreement and the formation of this private market trading ecosystem, please visit Pat O'Meara's Medium post.
For parties interested in how they can leverage Rialito and Inveniam for the capital formation and price discovery objectives, please contact:
About Rialto Markets
Rialto Markets is a trusted 'go to' fully regulated broker dealer empowering companies to raise money through our unrivalled expertise in crowdfunding and institutional investment. We operate a fully compliant secondary market trading platform for buying and selling shares in private companies. Rialto Markets is a SEC and FINRA Regulated Broker Dealer (Rialto Primary) operating an Alternative Trading System (Rialto Secondary) for private securities including those issued as a Digital Asset Security. For more information go to: www.rialtomarkets.com
Inveniam is a fintech company, headquartered in Miami, Florida, with offices in New York City and Detroit, MI. Founded in 2017, Inveniam has built Inveniam.io, a powerful technology platform that utilizes big data, AI, and blockchain technology to provide not only surety of data, but high-functioning use of that data in a distributed data ecosystem. Through Inveniam's platform, users can obtain real-time pricing of private, infrequently traded assets, accelerate diligence, accurately price assets, and identify buyers for those assets. Inveniam's platform credentials data to commute trust throughout the global financial system. Inveniam holds numerous patents pertaining to the ingestion of data into smart contracts. For more information go to: www.inveniam.io
About Tokeny Solutions
Tokeny provides an enterprise-grade infrastructure to allow companies and financial actors to compliantly issue, transfer, and manage assets on blockchain, enabling them to improve asset liquidity. Tokeny is a Blockchain 50 company recognized by CB Insights. They are backed by Euronext Group, Inveniam, Apex Group, and K20 Funds. To date, over $28 billion worth of assets have been tokenized using their solution. For more information go to: www.tokeny.com
Ownera is an institutional-grade digital securities routing and settlement network. Ownera interconnects asset sources and financial institutions to enable the trade of any digital security, from any source and tokenization platform, using any underlying technology. Ownera offers financial institution a unified wallet API that allows them to give their clients access to any of the digital securities. The Ownera technology aggregates and normalizes all the digital securities from all the sources, including onchain and offchain data, transactions and regulatory flows. Ownera is operating in the private market space, supporting tokenized real estate, funds, bonds and private company shares. The Ownera unified wallet API supports primary issuances, secondary trading and borrowing and lending. More details on: https://ownera.io