Altvesto Securitization Fund in Luxembourg sets up a sub-fund (compartment) dedicated to the real estate asset (A). The sub-fund owns a local operational SPV (B) with the purpose of holding the asset. (C)
Fractionalized ownership of single real estate assets
Access to €10—150M investments with €125K minimum tickets
Access to investments in CEE & Baltics with 4,5—7% yield in operating businesses and 10—25% IRR in construction projects
Secondary market for funds' securities issued in tokenized form
Compliant, transparent and secure investment in exchange-listed securities
For all professional investors:pension funds, family offices, individuals
How It Works
The real estate investment fund’s shares, representing securities, are issued in dematerialized form. Any record of issuing or trading movement is made on the blockchain and on the regular stock exchange accordingly. Tokenization of funds’ shares allows us to launch a secondary market on the Altvesto DLT platform with direct access without brokers or high transaction fees. We open emerging markets with high yields like Poland, CEE and Baltic countries to investors from well-developed countries, and make the investment secure and liquid.
Both the SPV shares and the asset are safeguarded by an external trustee or custodian to prevent using the asset as collateral for a loan or sale of the asset. (D) Safeguarding rules are defined in the set of contracts between investors and Altvesto management. (E) As a result, investing in the asset under the scheme means the ownership cannot be affected by any managerial decision by Altvesto.
The fund issues securities (F) representing shares in the underlying asset and income generated by the asset (G), that is distributed among investors (H). The fund distributes dividends to securities owners on a quarterly basis. (I)
The securities are listed on a traditional stock exchange (J) for better visibility and to provide investors with additional transparency. An OTC secondary market is launched on the Altvesto DLT platform (K) to allow investors to buy and sell securities (L). Once the investor subscribes or redeems on the Altvesto platform, the changes become visible on the stock exchange (M), (N).
The securitization fund is currently in the process of incorporation
How It Works
The real estate investment fund’s shares, representing securities, are issued in dematerialized form. Any record of issuing or trading movement is made on the blockchain and on the regular stock exchange accordingly. Tokenization of funds’ shares allows us to launch a secondary market on the Altvesto DLT platform with direct access without brokers or high transaction fees. We open emerging markets with high yields like Poland, CEE and Baltic countries to investors from well-developed countries, and make the investment secure and liquid.
Ownership structure
Altvesto Securitization Fund in Luxembourg sets up a sub-fund (compartment) dedicated to the real estate asset (A). The sub-fund owns a local operational SPV (B) with the purpose of holding the asset. (C)
Security for investors
Both the SPV shares and the asset are safeguarded by an external trustee or custodian to prevent using the asset as collateral for a loan or sale of the asset (D). Safeguarding rules are defined in the set of contracts between investors and Altvesto management. (E) As a result, investing in the asset under the scheme means the ownership cannot be affected by any managerial decision by Altvesto.
Securities issuance
The fund issues securities (F) representing shares in the underlying asset and income generated by the asset (G), that is distributed among investors (H). The fund distributes dividends to securities owners on a quarterly basis. (I)
Secondary market
The securities are listed on a traditional stock exchange (J) for better visibility and to provide investors with additional transparency. An OTC secondary market is launched on the Altvesto DLT platform (K) to allow investors to buy and sell securities (L). Once the investor subscribes or redeems on the Altvesto platform, the changes become visible on the stock exchange (M), (N).
The securitization fund is currently in the process of incorporation
Key Advantages
FRACTIONALIZED OWNERSHIP
Fractionalized ownership of single projects allows investors with relatively small tickets to participate in big projects and diversify their portfolios by investing in several assets. In addition, each investor has the freedom to choose specific projects according to their own criteria, instead of investing in a portfolio prepared by a third party, as in the case of REITs.
SECURITY
As an institution obliged to report to the Central Bank of Luxembourg and an issuer of exchange-listed securities, we provide investors with the highest levels of security and transparency. Assets are secured by an external trustee/custodian to ensure investors’ control of their assets.
ACCESS TO BEST PROJECTS
We provide investors from all over the world with access to high-quality, audited projects in CEE and the Baltics, where the yield of operating businesses can still exceed 6%, and IRR on selected construction projects can reach levels as high as 25%. We build our pipeline in close cooperation with leading international consulting companies to ensure security and reduce risks.
EXIT STRATEGY
We grant investors access to a 24/7 DLT platform, where they can buy and sell securities, and we provide shareholders with an exit-strategy through traditional stock exchanges.
The investment process
Preparation
1ST MONTH
- Basic assessment of the asset
- Teaser preparation
- First discussions with investors
- Reaching soft commitments with investors
- Signing LOI with a project owner
Preparation
2ND-3RD MONTH
- Conducting an external audit and due diligence
- Preparation of an Investment Memorandum and business plan
- Fundraising campaign and roadshow
- Reaching strong commitments with investors
Execution
4TH AND 5TH MONTH
- Signing a preliminary property purchase agreement with a project owner
- Signing a preliminary property purchase agreement with a project owner
- Arrangements: custodian, auditor, administrator, asset management company, etc.
- Preparing a token specification
- Setting up a sub-fund dedicated to the asset
- Investor onboarding
- Token issuance
Closing
6TH MONTH
- Money collection (through custodian)
- Final purchase agreement and ownership transfer from the previous owner to the fund
- Securities distribution among investors
The Altvesto investment platform
- Marketplace for real estate investments
On the platform, qualified investors get access to high-quality deal flow of investment opportunities - Primary market for securities
The platform allows qualified investors to purchase securities via an online interface - Digital shares issuance engine
This makes it possible to specify and launch any type of digital securities in full compliance with EU legislation - 24/7 secondary market
The platform allows for instant buying and selling of securities 24/7, without a broker
Team
Ivan Aleksandrov
FOUNDER, CEO
Entrepreneur with significant experience in venture capital, private equity and real estate. Consultant specializing in mergers and acquisitions and investment in IT companies; participated in several M&As and IPOs.
Dmitry Kozelkin
CO-FOUNDER
MS, BBA, banking advisor. Seasoned banker with a solid background in operations, customer service, and business development in internationally recognized companies. Proficient in the latest fintech innovations.
Adam Major-Machnacki
DIRECTOR, POLAND
Specializes in finance, business strategies and development, M&A and business transformation. Holds an EMBA in Finance and Banking. He has advised and worked for Microsoft, HP, Oracle, and ING.
Team
Ivan Aleksandrov
FOUNDER, CEO
Entrepreneur with significant experience in venture capital, private equity and real estate. Consultant specializing in mergers and acquisitions and investment in IT companies; participated in several M&As and IPOs.
Dmitry Kozelkin
CO-FOUNDER
MS, BBA, banking advisor. Seasoned banker with a solid background in operations, customer service, and business development in internationally recognized companies. Proficient in the latest fintech innovations.
Adam Major-Machnacki
DIRECTOR, POLAND
Specializes in finance, business strategies and development, M&A and business transformation. Holds an EMBA in Finance and Banking. He has advised and worked for Microsoft, HP, Oracle, and ING.