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RealBlocks Launches Online Liquidity Platform for Alternative Investment Funds

Rocket takes off from the hand of the businessman. Concept of start up.

RealBlocks, a company that provides access to alternative investments by digitizing shares of funds over a blockchain-enabled network, announced the launch of Queue Protection.

The company says Queue Protection was designed to help relieve mounting liquidity pressure for private funds hitting redemption limits or being gated. RealBlocks says this advances it’s mission to simplify investing in private funds.

“With many firms looking for additional ways to provide liquidity for investors, we set out to deliver a solution for clients and managers that leverages our unique secondary trading technology,” Perrin Quarshie, chief executive officer of RealBlocks, said. “Our platform already has a built-in secondary trading mechanism, and that has allowed us to quickly respond with this product offering specific to current market conditions.”

Within 60 days, RealBlocks says the company can set up a white-label solution for asset managers that provides a digital investing and secondary trading process. The firm offers access to a variety of purchasers, including secondaries managers and other limited partners of the fund. The general partner controls permission over who can participate in the transactions. RealBlocks says the first secondaries manager on the platform has already offered $1 billion of capacity.

The company says that the proprietary secondary marketplace gives general partners a “fully permissioned, dark pool trading environment” so that they have complete control over all platform transactions. RealBlocks reports that the dark pool transactions are non-discoverable and will not impact the fund’s NAV.

“We’re excited to offer asset managers an enhanced opportunity to fulfill redemption requests and improve the investor experience,” Quarshie said. “We believe our technology can provide immediate and ongoing value to both asset managers and investors in private funds who are concerned about illiquidity in the current environment.”

As The DI Wire previously reported, Starwood Real Estate Income Trust shares began trading on a similar platform, LODAS Markets, previously known as Realto Inc., an operator of a web-based marketplace for the secondary trading of illiquid real estate and alternative investments, after limiting investor withdrawals.

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