Sygnum, Hamilton Lane, and Apex Introduce DLT-Registered Shares for Global Private Markets

Sygnum Bank, Hamilton Lane, and Apex Group have unveiled a new initiative aimed at democratizing access to global private markets for a wider range of qualified investors.

Utilizing blockchain technology, the DLT-registered share class streamlines fund management functions, enhancing accessibility and operational efficiency.

The inaugural fund to adopt this share class is Hamilton Lane’s USD 3.8 billion GPA Fund, boasting an impressive annual average performance growth of 14.6% and outperforming the MSCI World Net Total Return Index (USD) by 4.44% since its inception in 2019.

With Sygnum’s DLT solutions at the forefront, this initiative significantly lowers the fund’s entry point compared to traditional private markets’ evergreen funds. These DLT-registered shares will be exclusively available to Sygnum’s professional, institutional, and corporate clients.

This pioneering collaboration, over a year in the making, sees Hamilton Lane serving as the investment manager for the new offering. Apex Group, in its capacity as transfer agent and fund administrator, and FundRock-LRI, as the Alternative Investment Fund Manager (AIFM), leverage Sygnum’s DLT solution to manage the on-chain share registry.

Victor Jung, Head of Digital Assets at Hamilton Lane, emphasizes the transformative potential of tokenization in democratizing access to private markets. He invites the community to join this digital-native offering, highlighting the Swiss Private Wealth team’s role in positioning the region as a leading digital asset hub.

Fatmire Bekiri, Sygnum’s Head of Tokenization, also hails the introduction of the DLT-registered share class as a significant step in broadening access to private markets. She underscores the strategic partnership with Hamilton Lane and Apex, anticipating a series of new opportunities for investors.

This initiative leverages Sygnum’s expertise in harnessing blockchain capabilities within a fully regulated environment. Key project elements include fractionalization of assets, streamlined compliance, end-to-end automation of on-chain share registry, and increased transparency facilitated by DLT. The project operates on the Polygon blockchain.

According to McKinsey, the exponential growth of global private markets fundraising underscores their consistent outperformance of public markets. However, until now, high investment commitments have restricted access for many investors. This initiative aims to bridge that gap, unraveling a new era of inclusivity in the investment landscape.