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Private Equity

Vancouver home to the ‘first-of-its kind’ global fund to accept cryptocurrencies

InvestX offers investors holding on to bitcoin and other cryptocurrencies to ‘de-risk’ their portfolio by investing them in companies. Find the full article on the Financial Post. A new fund launched Thursday is offering to accept digital currencies such as bitcoin and translate them into investments in pre-IPO companies. Vancouver-based InvestX Master GP1, a wholly … Continue reading Vancouver home to the ‘first-of-its kind’ global fund to accept cryptocurrencies

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InvestX offers investors holding on to bitcoin and other cryptocurrencies to ‘de-risk’ their portfolio by investing them in companies. Find the full article on the Financial Post.

A new fund launched Thursday is offering to accept digital currencies such as bitcoin and translate them into investments in pre-IPO companies.

Vancouver-based InvestX Master GP1, a wholly owned subsidiary of InvestX Capital, said in a release that its “first-of-its kind” global growth equity fund will provide access to investments in “late-stage” private companies to investors who are holding on to cryptocurrencies. The fund will accept traditional currency as well.

The fund is being launched amid a major drop in the price of bitcoin, fuelled in part by regulatory rumblings in China and South Korea.

Marcus New, chief executive officer and founder of InvestX, said the fund offered a means for investors to diversify away from cyrptocurrencies, likening the current situation to the dot-com era.

“And we all know the tragedy that happened for everyone that had all their money in dot-coms, and how little of it they kept,” New said. “What we’re saying is that cryptocurrency investors need to take at least 20 per cent of their profits and diversify it.”

InvestX’s four-year fund will be open to accredited investors in Canada, the United States and abroad. Investors can buy in with the cryptocurrency of their choice, New said, and be paid back in a digital coin, if they so desire.

InvestX says the criteria for its typical investments in private companies is that they have a minimum $1-billion valuation, an average growth rate of at least 40 per cent, and proof of a possible liquidity event, such as an IPO, coming up in a year to three years.

There aren’t many of those, New noted, saying that the fund will offer investors an opportunity to invest in around 12 to 16 of those companies, of which he estimated there are likely less than 50.

“You can’t find a billion-dollar company growing at 40 per cent in the public markets … there aren’t any,” New said, adding that a biotech company may do so once in a while for a few years.

Investors will be able to transfer their cryptocurrencies directly from their digital “wallet” to that of InvestX, the firm said, “with crypto converted to fiat at the spot rate using institutional crypto FX pricing.” The digital wallet information is encrypted and kept on a “secure offline database.”

New said his firm has found a “sweetspot” by buying “odd lots” of companies in the private markets. Those blocks can offer a discount in price, he said, because large institutional investors won’t bother with lots worth less than $25 million apiece, eliminating competition for them.

“People that were insightful should benefit for that for the rest of their lives,” New said. “They shouldn’t lose it all if there’s a big correction.”

Find the full article on the Financial Post.

Source: https://blog.investx.com/2018/01/18/vancouver-home-to-the-first-of-its-kind-global-fund-to-accept-cryptocurrencies/

Private Equity

Boston startups expand region’s venture capital footprint

This year has shaken up venture capital, turning a hot early start to 2020 into a glacial period permeated with fear during the early days of COVID-19. That ice quickly melted as venture capitalists discovered that demand for software and other services that startups provide was accelerating, pushing many young tech companies back into growth […]

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This year has shaken up venture capital, turning a hot early start to 2020 into a glacial period permeated with fear during the early days of COVID-19. That ice quickly melted as venture capitalists discovered that demand for software and other services that startups provide was accelerating, pushing many young tech companies back into growth mode, and investors back into the check-writing arena.

Boston has been an exemplar of the trend, with early pandemic caution dissolving into rapid-fire dealmaking as summer rolled into fall.

We collated new data that underscores the trend, showing that Boston’s third quarter looks very solid compared to its peer groups, and leads greater New England’s share of American venture capital higher during the three-month period.

For our October look at Boston and its startup scene, let’s get into the data and then understand how a new cohort of founders is cropping up among the city’s educational network.

A strong Q3, a strong 2020

Boston’s third quarter was strong, effectively matching the capital raised in New York City during the three-month period. As we head into the fourth quarter, it appears that the silver medal in American startup ecosystems is up for grabs based on what happens in Q4.

Boston could start 2021 as the number-two place to raise venture capital in the country. Or New York City could pip it at the finish line. Let’s check the numbers.

According to PitchBook data shared with TechCrunch, the metro Boston area raised $4.34 billion in venture capital during the third quarter. New York City and its metro area managed $4.45 billion during the same time period, an effective tie. Los Angeles and its own metro area managed just $3.90 billion.

In 2020 the numbers tilt in Boston’s favor, with the city and surrounding area collecting $12.83 billion in venture capital. New York City came in second through Q3, with $12.30 billion in venture capital. Los Angeles was a distant third at $8.66 billion for the year through Q3.

Source: https://techcrunch.com/2020/10/23/boston-startups-expand-regions-venture-capital-footprint/

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Private Equity

Alternative Investments/Real Estate: Housing Market Demand Is “Insane”

Speaking to CNBC on Power Lunch, Glenn Kelman, CEO of real estate brokerage Redfin (NASDAQ: RDFN), said he expected the current boom conditions in the housing market to last well into next year. He attributed the high demand to affluent professionals looking for remote homes as well as low interest rates. Also, he thinks some sellers will put their properties on the market only after the presidential election.

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Alternative Investments/Real Estate: Housing Market Demand Is “Insane”

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Redfin CEO Glenn Kelman says the boom could last into next year.

Speaking to CNBC on Power Lunch, Glenn Kelman, CEO of real estate brokerage Redfin (NASDAQ: RDFN), said he expected the current boom conditions in the housing market to last well into next year. He attributed the high demand to affluent professionals looking for remote homes as well as low interest rates. Also, he thinks some sellers will put their properties on the market only after the presidential election. (CNBC)

Kelman: Too good to last forever

“This level of demand is absolutely insane. I would expect it to last into 2021, at least,” Kelman said.

Recent data from the National Association of Realtors shows up the strength in the housing market.

Existing home sales shot up 9.4% in September beating expectations. Even though the median purchase price of a home rose approximately 15% year over year, there is just a 2.7-month supply of for-sale homes, showing tight market inventory conditions.

The 30-year fixed-rate mortgage averaged 2.80% for the week ending Oct. 22, down from 2.81% in the previous week and 3.75% a year ago, according to the Freddie Mac Primary Mortgage Market Survey. Therefore, mortgage rates crept even lower in the latest week.

However, “there’s no way it can last forever,” Kelman warned of the bullish conditions.

Canada: Off the charts

Meanwhile, at the northern neighbor, home sales activity in September is described as “off-the-charts.”

Housing data released by the Canadian Real Estate Association (CREA) last week showed a nationwide year-over-year increase in sales of 45.6%.

This was a new all-time monthly record for the third month in a row.

“This is starting to sound like a broken record (about records being broken), but Canadian home sales and prices set records once again in September … as they did in July and August,” said Shaun Cathcart, senior economist at CREA, in a statement.

Real Estate ETFs in the U.S.

The year-to-date performance of some real estate ETFs is shown below:

iShares U.S. Home Construction ETF (ITB)              +24.61%

SPDR S&P Homebuilders ETF (XHB)                          +20.83%

Vanguard Real Estate Index Fund ETF                      -13.91%

It may be noted that despite the boom conditions in housing, real estate ETFs and stocks have declined in recent days.

According to Barron’s, this may be due to yields on the 10-year and 30-year Treasuries moving higher in recent weeks.

Other reasons could be fears of inflation ticking up in the future amidst an improving economic situation.

Nevertheless, the view is that interest rates are likely to remain low for longer. So demand may remain strong.

“Part of what is fueling this boom is that the economy has just split into two and rich people are able to access capital almost for free, so, of course, they’re going to use that money to buy homes,” said Redfin’s Kelman.

Related Story:   Mortgage Rates Set Another Record Low; Real Estate ETFs Could Benefit

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Source: https://dailyalts.com/alternative-investments-real-estate-housing-market-demand-is-insane/

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Private Equity

Asda’s new owner EG Group seeks new leadership ahead of IPO – report

EG Group is owned by the billionaire Issa brothers and the private equity firm TDR Capital, who teamed up for a £6.8 billion takeover of Asda last month

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UK grocer Asda Group’s new owner EG Group is looking for a new chairman and independent directors as it prepares for a £10bn initial public offering, The Timesreports.

EG Group is owned by the billionaire Issa brothers and the private equity firm TDR Capital, who teamed up for a £6.8 billion takeover of Asda last month.

The move comes after Deloitte resigned last week as the company’s auditor because of concerns over the group’s governance and lack of internal controls, according to the publication.

A decision on candidates will be taken before the end of this year, although roles haven’t been finalised yet as the company is in the process of deciding whether to float in the UK or the US, The Times reports.

Write to Barcelona editors at barcelonaeditors@dowjones.com

From Dow Jones Newswires

Source: https://www.penews.com/articles/asdas-new-owner-eg-group-seeks-new-leadership-ahead-of-ipo-reports-20201023

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