Access to alternative assets to grow through digital investor marketplaces

Access to alternative assets to grow through digital investor marketplaces

12th April 2022
  • More investors are investing their capital in niche alternative assets linked to their passions such as classic cars, fine wine, sportspeople and environmental projects
  • Digital investor marketplaces are creating greater access to investment opportunities that have historically been limited to all but institutions and the most wealthy of individuals
  • Delio Ventures is forming partnerships with new and scaling marketplaces that need proven private markets technology to connect investors with interesting opportunities 

A new initiative designed to help more investors to access alternative asset classes such as fine wine, classic cars and antiques has been launched by fintech specialist Delio.

Interest in alternative assets has grown – and continues to grow – exponentially, due to high inflation and high market volatility within traditional asset classes. Alternative investment market assets under management are expected to grow from US$7.9 trillion in 2013 to US$14 trillion by 2023. It is this increasing interest which has prompted Delio to work in partnership with marketplaces that are likely to play a significant role in meeting accelerating investor demand.

The company’s new offering – Delio Ventures – digitises marketplaces specialising in everything from ‘passion investments’ right the way through to ESG and real estate investing. It helps reduce the entry point for investors into alternative assets from the traditional high five or six figure sums, down to much more modest amounts, that are likely to appeal to mass affluent audiences.

The technology being offered is a version of Delio’s proven private markets platform that is used by financial institutions across the world such as Barclays, Coutts and UKBAA. As a result, even marketplaces that are at the concept or pre-seed funding stage can build a robust digital foundation thanks to the flexibility offered by the Delio Ventures model. This includes the option of paying a reduced fee for use of their platform or potentially paying no up-front costs at all, with Delio taking an equity share in the marketplace instead.

The alternative investment opportunities provided by Delio initiative Ventures : streamlined operations, proven technology, specialist industry experience, go to market more efficiently, lower cost to market and scale more quickly.

While each marketplace varies, some offer investors the opportunity to deploy their capital in investments with much lower minimum ticket values. Historically, alternative assets have only been an investment option for institutional investors or UHNW individuals due to the minimum investment levels often being in six figures. However, as demand for private markets has grown, so has the number of marketplaces that can offer access to diverse and more affordable investment opportunities. 

Gareth Lewis, chief executive of Delio, said: 

“The launch of Delio Ventures marks another critical step in scaling investor access to private markets. While Delio’s growth has been based on our ability to enable financial institutions to distribute, manage and report on the private investment opportunities they offer to their clients, we know that direct to investor marketplaces are also gaining significant traction. However, many marketplaces lack the time or resources to develop the sophisticated digital platforms needed and take advantage of the opportunity in front of them.

“The way in which Delio’s technology has been engineered means that we are able to deploy it in diverse and exciting ways. This is why we are keen to work in partnership with a wide variety of marketplace providers, from early-stage concepts to more established platforms. Regardless of the maturity of their offering, I am confident that we can add value through the significant experience we have acquired during our work with some of the world’s most respected financial institutions.”

The Ventures programme forms part of Delio’s strategy to accelerate and simplify how investors can access the most exciting opportunities in alternative asset classes. It is available to any organisation operating in the alternative assets space – which can range from pre-seed concepts to established marketplaces.

Find out more about Delio Ventures