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Private Equity Platform

The Challenge

This case study highlights OrcheXtrade Private Equity's successful implementation of its innovative platform in collaboration with a Latin American Stock Exchange.

High-growth companies are constantly in pursuit of capital to fuel their expansion. The average time for a company to complete an IPO has increased to +12 years, due to volatile public markets and growing regulatory burdens.

 

This creates challenges for:

 

  • Employees and initial investors: Frequently looking for opportunities to sell their shares due to the prolonged IPO process.

 

  • Market investors: Despite strong interest in high-growth companies, finding reliable information and investment opportunities is often difficult.

Pre-IPO Platform

Employees and early stage investors often lose potential gains by selling shares at a significant discount before the IPO and are often left with illiquid investments that cannot be monetized or diversified.

 

Based on pricing data of a sample of 58 transactions in the year prior to successful IPO, the average discount was ~39%

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Source: Paper “Cashing It In”. Stanford University, Closer Look Series (Sept. 2018), SharesPost

An opportunity for Market Investors: despite the advantage of a more efficient market infrastructure, public markets have been outperformed by private markets in value & growth.

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Source: Mckinsey & Co., McKinsey’s Private Markets Annual Review, March, 2022

Therefore, investors could benefit by exposing their portfolios to private assets, under potentially higher risk-adjusted returns. 

 

But investing in private assets is a pain for investors:

  • Manual processes

  • High entry tickets

  • High fees

  • Illiquid

​Traditional pre-IPO markets are fragmented and opaque, limiting access, with no industry-wide solution.

In response to these challenges, we have pioneered a technological breakthrough in Latin America. Our innovative private equity platform seamlessly bridges the gap between private companies and potential investors.

 

This platform facilitates the entire process in a fully digital environment, revolutionizing how high-growth companies and investors connect.

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Our Solution

API and white-label platform that enable businesses to build seamless and secure investment experiences for their end users. We streamline the whole process, letting our clients focus on their core business.

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01

Accelerate your
go-to-market

Our fully-functional base platform allows for quick and efficient solutions

02

Configurability

Our base platform can be seamlessly adapted to our client’s use case

03

Expand your investor base

Expand your reach to a wider range of investors

Main Functionalities

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Benefits for Companies' shareholders and Market investors

User Journey

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Considers optional blockchain integration to tokenize the investment, in a fully automatized fashion

Key Results

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Ensured compliance and reduced legal risks to investors and issuers 

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Streamlined the issuance process for companies, reducing paperwork and administrative overhead by +50%

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User-friendly interface for investors to explore opportunities, conduct transactions, and manage investments

Participants

+20 team members from the selected client participated (Latin American Stock Exchange)

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Platform overview

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