Cadence is leveraging the power of distributed ledger technology to enable the digital securitization of private credit investment products.
Cadence has launched its investment platform for private credit, leveraging its proprietary digital securitization technology to make these alternative investments available and accessible for its institutional and accredited investors.
Since 2000, private credit has been the fastest growing asset class in private capital markets, achieving a compound annual growth rate of just under 20%. According to The Alternative Investment Management Association (AIMA), by 2020, total global assets under management in private credit is forecast to surpass $1 trillion, with over $414 billion sitting on the sidelines in cash. These figures demonstrate both the remarkable growth of private credit markets and the challenges the industry has faced in meeting investor demand.
Sourcing opportunities to deploy this capital continues to present a tremendous challenge for the buyside community. With 40% of all sourcing coming exclusively from direct relationships, platforms like Cadence help to create a more transparent and efficient capital market that can scale.
As stated by Cadence’s Founder and CEO, Nelson Chu, “The securitization market for private credit has been in desperate need of innovation, especially when it impacts so much of our economy today. Think about the granola bar company that just got their first big purchase order from Whole Foods that they can’t fulfill or the mobile app developer that needs to make payroll while Apple takes 45 days to pay out their earnings from the App Store. Cadence is doing its part to help power the growth of small to medium sized enterprises by providing them market-driven cost efficiencies.”
To date, they’ve issued 10 different securitizations all with varying durations under 9 months during their private beta. The company launched the first-of-its-kind tokenized debt security and also was the first to list their digitized assets on The Bloomberg Terminal.
Cadence closed a fundraising round of $2 million earlier this year led by Recharge Capital, whose portfolio companies include Cadre, Care/Of, dv01, RigUp, and Uala. Institutional investors included Fantail Ventures, Argo Ventures, the venture arm of Argo Group (NYSE: ARGO), Coinbase Ventures, and INBlockchain. Strategic angel investors included current and former senior executives from several of the leading banks and asset managers.
Cadence is a digital securitization and investment platform for private credit. The company has developed a suite of software and services to streamline the securitization process from end to end. Cadence is built with both institutional and retail investors in mind, integrating directly into their existing workflows with high yield, short duration investment products. Learn more at withcadence.io.
Cadence Group, Inc.