Aditum Alts Files Patent On Private Market Commitment System

News provided by

Aditum Alternatives

Jun 30, 2021, 07:47 ET

RANCHO SANTA FE, Calif., June 30, 2021 /PRNewswire/ -- Aditum Alternatives announced the filing of a new patent application for technology designed to limit dilution of investors in private market investment funds. The patent application reflects an enhancement of the Aditum Aqueduct, which enables novel private market investment products. Aditum Alternatives refers to the enhancement as "Commitment Vintages".

"Private market vintage funds have for decades avoided cash drag and dilution of investors.  In attempting to limit cash drag and dilution, current registered private market funds significantly limit their investment universe. They've effectively eliminated new investment in underlying primary funds, which give underlying sponsors the power of when to invest, are vehicles of choice for institutional investors and historically have reflected the outperformance of private over public markets," said Ken McGuire, President of Aditum Alternatives. He continued, "Current registered private market fund investors are subject to dilution by new investors.  20% in new assets would dilute current investors' share of private market investments by almost 17%. Commitment Vintages allow an Aqueduct master fund investor, such as an institution, individual or Aqueduct feeder fund, to contribute little diluting capital at subscription and most of their capital subsequently, when needed for investment purposes. Investors in an earlier Commitment Vintage avoid dilution from investors in a later Commitment Vintage, while all are invested in a single, common, multi-vintage master fund."

Benefits of the Aditum Aqueduct include:

  • Expanded opportunities for investor liquidity, including via secondary sales to qualified institutions
  • Investor control of liquid assets, thereby eliminating cash drag
  • Limited investor dilution of private market holdings as new assets are raised
  • Expanded universe of underlying investments, including primary fund offerings

About Aditum Alternatives LLC
Aditum Alternatives focuses on "expanding access to non-traditional investments" by advising clients on the design, engineering, operation and distribution of alternative, non-traditional investment products, and developing intellectual property for their clients' use. Aditum Alternatives LLC was founded in 2017.

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

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