The Cadence Mission: Unlock Alternative Investments for All

The Financial Crisis

Throughout college I was a fairly active trader. I threw caution to the wind and made concentrated bets in hopes of generating higher returns. I was captivated by the amount of money I could make from just a few lucky stock picks.

Of course, this was in the heyday of the markets before 2008. Anyone could have thrown a dart at a mining or agriculture company and turned a wild profit. Due to my fascination with the stock market, I chose to pursue a career in finance. I unwittingly accepted an offer at Merrill Lynch. In 2009, when I graduated, the market crashed. Bank of America purchased Merrill Lynch and the world turned upside down.

“As a average investor, I simply did not have access to the same caliber of deals. This felt fundamentally unfair. It was then that I made it a personal mission to find out how to open up these private investment opportunities to the world.”

At the the early stages of the financial crisis, I did the equivalent of trying to catch a falling knife. I trusted all the tactics I used in 2007 to look for diamonds in the rough. As a result, my investment account shed half its value. My IRA tanked and my 401K lost about as much money as I was putting into it every month.

As I made the jump from the sell-side to the buy-side, I started to learn more about private capital markets. I was surprised by the vast number of investment opportunities available to Institutions. Institutions were allocating more capital into alternatives to offset their losses in the market. As a average investor, I simply did not have access to the same caliber of deals. This felt fundamentally unfair. It was then that I made it a personal mission to find out how to open up these private investment opportunities to the world.

Exposure to Alternative Investments

Due to my wealth management experience, I eventually became an advisor to a number of family offices. I began to see firsthand just how exclusive the deals they had access to were and why they were completely out of reach for retail investors.

To participate in an investment, family offices had to cut a check sizable enough to cover the minimum investment requirement. It was a sum that far exceeded what a retail investor could afford. I learned that because investor operations and relationship management were incredibly time consuming, originators minimized their investor pool and placed high minimum investment restrictions to mitigate costs. This effectively cut out 90% of all investors.

Founding Cadence & The Rise of Blockchain

It wasn’t until recently, with the help of blockchain technology, that I started to realize we had the potential to open up this market. Technology could automate share fractionalization and distribution, simplifying the origination process, and dramatically reduce the overhead costs for originators.

“Cadence is using blockchain technology to unlock access to high yield (14% – 18%) alternative investments for all”

Building a platform which enables originators access to a broader audience would completely transform the dynamic between originators and investors.

This, coupled with a rising interest in alternative investments by the general public, made it clear that now was the perfect time to launch a platform like Cadence.

At Cadence, our mission is to make investing in alternative investments more transparent, more accessible, and more liquid than ever before. We want to help you build a financial future that you can control.

Cadence is made for all of us.

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Author
Nelson Chu
Founder & CEO
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