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Key Takeaways
- Caplight is an innovative startup that allows institutional investors to trade derivatives of private equity.
- It offers a chance to hedge positions, earn income on assets, and access liquidity, streamlining the way institutional investments are made.
- Based in San Francisco, Caplight serves a wide range of QIBs including hedge funds, VC funds, pensions, mutual funds, family offices, endowments, and insurance firms.
- It is partnered with North Capital Private Securities, an entity which offers the securities.
Friction in private equity markets has long been a point of contention for institutional investors. Inflexible positions, lack of liquidity, and barriers to income generation have traditionally dominated this investment landscape. All that is set to change with San Francisco-based startup, Caplight, which seeks to revolutionize the way institutional investors manage their private equity.
Founded by Javier Avalos and Justin Moore, Caplight offers a unique platform that allows Qualified Institutional Buyers (QIBs) to buy and sell derivatives of private equity – a first in private markets. This service could potentially provide unprecedented versatility and monetization for these specialized investors.
What sets Caplight apart is its ability to capitalize on an under-served market need. The mechanics of the company democratize access to private equity trading; offering seamless access similar to public market settlements. The platform offers investors the opportunity to hedge positions, generate income on assets, and obtain much needed liquidity. This broad spectrum of offerings gives Caplight a significant edge in the financial services sector.
Moreover, the firm’s selection of target audience also speaks volumes about their business model. Addressing a wide array of QIBs – hedge funds, VC funds, family offices, pensions, endowments, mutual funds, and insurance firms – Caplight is gearing to serve different investment needs while amplifying the impact of their solution.
The potential of Caplight and its role in shaping the future of private equity trading cannot be understated. This innovative platform not only brings much needed fluidity to the sector, but also opens up opportunities for income generation and hedging positions on assets. Its future may see an expansion of its user base, and with it, increased adoption of its unique private equity trading model.
As a pioneer in bringing public settlement-like mechanics to the private sector, Caplight is definitely a startup to watch. Once Caplight fully capitalizes on the current market needs, the entire investment industry could find itself running on a different gear.
For more information, follow Caplight on LinkedIn or visit their website.
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