When we say Swarm Fund is a decentralized capital marketplace that gives smaller investors access to institutional-style private equity and hedge funds, the benefit for those investors is clear. They can put their money to work in high-return asset classes, without having to meet the high dollar minimums – usually $1 million or more – that are usually required by these types of funds.
But the other side of the equation, and the other beneficiaries of the Swarm Fund model, are the fund managers themselves. In this video, you’ll hear why these managers are excited to take part as curated, pilot funds on the platform.
Take Daniel Tümpel, from Fine Art Partners, a financial services fund to blue chip art investors in Berlin. In the fast-moving world of art, where one-of-a-kind pieces from the likes of Andy Warhol don’t stay on the market for long, having rapid access to cash makes all the difference. And that’s where Daniel sees the advantages of the Swarm, to act quickly to capitalize on unique, fast-moving deals.
You’ll also meet Mark Oei, Founding Partner at Redwood Coast Capital and a former managing director of Sequoia Capital’s Heritage Fund, and current Swarm advisor, who recently launched his own private equity fund to invest in solar installations for commercial real estate. While he has more than 25 years of institutional investing experience, the relatively short history of his new solar fund can give large investors pause. But by bundling together smaller investors who want access to his type of disciplined, institutional deals, Swarm provides “access to a new community of investors from around the world.”
Then there’s the perspective of Haydar Haba, managing partner at Silicon Valley-based Andra Capital. Haba sees an opportunity to put the Swarm’s collective assets to work in the late stage, but pre-IPO, technology companies Andra invests in. He routinely sees 40 to 50 companies seeking Round C or D funds, and estimates his market opportunity to be upward of $50 billion dollars. An investor and advisor in Swarm, he sees the platform as an opportunity to raise additional capital for Andra’s Silicon Valley Venture Fund.
Finally, you’ll hear how a fund manager in the distressed real estate space wants to raise money in the “capital gap” that exists between large, institutional investors and smaller angel investors. By accessing money in a range between $5 and $50 million, he believes he can put more than $460 million to work to purchase foreclosed homes, renovate them, and sell them at a profit. And he thinks Swarm is the perfect platform to help him do that.
So don’t just take our word for it. Listen to these stories from the pilot fund managers who are getting ready to launch on the Swarm Fund platform.