Established Hedge Fund Manager to ICO in the First-Ever Private Equity Offering – Trustnodes

Established Hedge Fund Manager to ICO in the First-Ever Private Equity Offering

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Finles Capital Management, which manages the Finles/IEX Dutch Hedge Fund Index, is making an entry into this space with an ICO that aims to raise some $100 million.

Uniquely, the ICO is “backed by investments in a private equity fund,” according to a press release which further states:

“The proceeds of the ICO will be used to invest in the Finles Lowestoft Equities Fund (the “Fund”) a Fund managed by Finles Capital Management an independent fund management boutique operating since 1977,” before adding:

“It thus provides investors with a more diversified way to invest in blockchain through a structure that was previously only accessible to professional investors.”

They are regulated by the Netherlands Authority for the Financial Markets (AFM) and are registered with the SEC as an investment adviser, but US citizens are banned from taking part in the ICO, likely following SEC’s recent judgment.

“Investors rightly see the blockchain industry as an opportunity they should seize; with the crypto market capitalization already at $100bn. The blockchain market itself is predicted to grow at 58% CAGR over the next six years,” Rob van Kuijk, CIO of Finles Capital Management, says before adding:

“FundCoin… solely invests in a Fund that is run by professional managers and so linked to the structure that provides a more safe harbour in the highly volatile blockchain market.”

They currently manage half a billion euros and are looking to invest 30% of the ICO funds across the blockchain industry, with the vast majority of the rest allocated to traditional and private investments.

Opportunities and challenges according to finles.

They are targeting an internal return rate of 25% based on estimates by Allied Market Research that the blockchain space is to grow at a compound annual growth rate of 58% by 2023. With some of the profits used to buy back issued tokens.

It may be the latest sign that institutional investors are now starting to move into this space at some scale following some considerable recent developments as we detailed earlier.

 

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