A new private equity investment platform is in final preparation for launch by blockchain entrepreneurs and advocates Jason Granger and Charlie Shrem. It will be powered by Ethereum and a structured organizational framework focused on transparency and sound investment strategy.
The private equity fund aims to provide transparency to investment portfolios with the immutability of a blockchain and the backing of hard assets. Blockchain technology will be used to facilitate and administer the decentralized fund, which includes token purchasing, dividend payouts and dissemination of investor information.
The organization will consist of two companies, Mainstreet Investment LP and Intellisys Capital LLC. The former is a Cayman Island limited partnership and will own 30 percent, the latter is based in Grand Rapids, Michigan and will own a controlling stake of 70 percent.
Granger is CEO of the controlling company in this venture, Intellisys, and Shrem, who was released a few months ago from a U.S prison for co-funding BitInstant, will be the CTO.
“Mainstreet Investment is the first private equity investment offered as a digital ledger security that will change the landscape of middle market investment with a decentralized approach,” said Granger. “Providing liquidity and dividends to investors through the first digital token backed by hard assets will change the landscape of private equity investment on the blockchain.”
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Intellisys plans for Mainstreet Investment to invest in US-based middle market operating companies, real estate and blockchain technology projects. Shrem said that the fund “will not invest in high risk startups,” adding, “the initial focus will be on established middle market companies that have already been profitable for a few years.”
This strategy will allow Intellisys to gain a foothold in the market and begin generating dividends, giving it the ability to start investing in blockchain technology. “As Mainstreet Investment provides dividends to investors,” Shrem said, “we will look at blockchain companies that will be synergistic with our portfolio companies.”
He added: “The strategy is designed to create symbiosis between blockchain assets and traditional finance and to help many traditional sectors move toward state-of-the-art improvements and efficiencies.”
Upon reaching this stage, Intellisys will allocate 30 percent of Mainstreet Investment’s funds toward investment in Bitcoin and blockchain-specific ventures. This will lend to the legitimization of blockchain technology, said Granger, while simultaneously introducing a new way of utilizing private equity.
To get the project started, Mainstreet Investment will raise funds by distributing an Ethereum-based token, dubbed ‘MIT’ (Mainstreet Investment Token). The initial token offering (ITO) is slated to begin on Jan. 15, 2017 and to end Apr. 1, 2017. The MIT will be available to investors that are not U.S. residents, and to U.S. residents that are accredited investors.