One of the trends that we have been covering in-depth over the last few years is the digitalization of nearly all tradable asset classes on to electronic platforms. As a result, products where transactions have been driven by phone calls and person to person meetings are now finding their way onto platforms using both public and anonymous matching technology.
The latest is a new platform from inter-broker Tullet Prebon for alternative investments. Called TP-AIME (Tullett Prebon Alternative Investments Matching Engine), the platform provides an electronic marketplace of price discovery and executions for hedge fund, private equity, and real estate fund investments.
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According to Tullet Prebon, the view TP-AIME is being used in various scenarios. These include assisting investors to find buyers of their positions in non-liquid funds, a platform to help “one-time managed liquidity events aimed at investors that remain in tail end funds,” as well as providing transparency to the price discovery of secondary transactions of alternative investments.
The platform allows for both auction style and indicative pricing for investments listed on the platform. In addition, it is integrated to Tullet Prebon’s existing alternative investment auction infrastructure used by the inter-broker’s trading desks.
Commenting on the product launch, Suchita Nayar, Head of Alternative Investments North America at Tullett Prebon stated, “All markets have to develop if they are to thrive.” He added that the “new system has been a long time in development, but the clarity and integrity it brings to secondary transactions is another milestone in the evolution of the alternatives market. The screen offers increased transparency to LPs and GPs across the globe which is vital for international auctions with multiple participants”.