CE - Private Equity Platform

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%

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.

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.

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.