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UpMarket's mission is to unlock the private markets for individual investors. Our proprietary technology enables seamless investment-to-exit management for a myriad of alternative asset classes and private-market opportunities.
UpMarket, an alternative asset investment platform that helps individual investors build more diversified portfolios by tapping into private markets, announced a significant transaction milestone along with an update to its investment management technology that enables private-market investments to be managed digitally across their entire lifecycle, from investment through reporting and exit.
Classic Models of Diversification Are Not Delivering Expected Results
Recent market stress has challenged traditional concepts of diversification, especially the 60/40 portfolio which, according to Bloomberg, "is down 20% this year [and], a hair away from topping 2008 as the worst year ever." With the classic bond/equity portfolio underperforming, institutional investment in "private markets is cushioning many of the world's largest investors from the wreckage wrought by runaway inflation and spiraling interest rates." While professional and institutional investors can easily tap into private markets to find diversification and uncorrelated asset classes, individual investors have had limited access.
Private Markets Remain Largely Untapped by Individual Investors
With significant minimum investment amounts, complicated legal structures, difficulty around reporting and administration, and a general lack of access, retail investors have been largely excluded from participating in the private-market boom.
UpMarket founder Grace Chen shared, "Institutional investors have the access and ability to deploy billions into alternative investment strategies. I started UpMarket to provide similar access for accredited individual investors, empowering them to allocate capital to a curated selection of hedge funds, private equity, pre-IPO companies, and other alternative investments." Chen added, "Along with providing diversified investment opportunities, our goal is to help investors learn more about alternatives through regular educational content, including webinars where they can hear directly from professional managers about the markets they operate in and the trends they are seeing."
Viewing diversification as the bedrock principle of any long-term investment strategy, Chen explained, "Private markets are flush with opportunities — the opportunity to invest in uncorrelated asset classes, to partner with professional money managers who have unique expertise and compelling track records, to acquire companies long before IPO, and to purchase assets at a significant discount in times of stress. Now with UpMarket, those opportunities are much more accessible."
That increased accessibility and the attractiveness of private-market opportunities are key reasons why investors have deployed over $125 million through the UpMarket platform.
Empowering Individual Investors With Technology
Along with providing compelling investment opportunities, UpMarket has invested heavily in its platform to make managing a private investment seamless across an investment's entire lifecycle. With UpMarket's technology, the subscription, reporting, administration, and distribution of assets related to a private investment can now be handled entirely through the UpMarket website.
Peter Wang, UpMarket's Chief Technology Officer, explained, "We looked at the private investment process and built from first principles a solution to make private investing as easy as possible. We removed the pen-and-paper signature process. Now everything related to a private-market investment has a single source of truth — it means no more searching for expired DocuSign emails, investment documents or needing to call someone to know the status of an investment. There are many great user experiences for public-market investing. We are bringing that same level of innovation to the private markets."
Investors looking to access alternative asset classes and private-market opportunities can learn more at www.upmarket.co/.
UpMarket's mission is to unlock the private markets for individual investors. Our proprietary technology enables seamless investment-to-exit management for a myriad of alternative investments including pre-IPOs, hedge funds, real estate, private equity, venture funds, and other asset classes. Founded in 2019, UpMarket has helped investors deploy over $125 million into private markets.
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Original Source: UpMarket's Seamless Private Investment Technology Helps Investors Move Over $125 Million Into Alternative Asset Classes