Expanding access to non-traditional investments

aditum (ah-dee-tum): Latin, meaning “access”

Mission

Mission

Aditum Alternatives’ mission is to expand private and individual investor access to non-traditional investments.

We advise clients on the design, engineering, operation and distribution of alternative, non-traditional investment products, and develop intellectual property for our clients’ use.

Aditum Aqueduct

Aqueduct

Aditum Aqueduct

The Aditum Aqueduct is a patent pending innovation for registered ’40 Act funds employing private market investment strategies, such as private equity and private credit. The Aditum Aqueduct is comprised of both novel investment product structures and enabling technologies, that offer:

  • Capital-Cycle Management of underlying vintages,
  • Capital Efficiency without excessive over-commitment1 and its attendant risk,
  • Direct or Indirect Control of Liquid Assets, eliminating cash drag1 that mutes the returns of many evergreen2 funds, and
  • expanded Exit Liquidity opportunities for investors.

The Aditum Aqueduct addresses issues with both the vintage3 and evergreen2 fund formats that comprise the bulk of currently available private market investment products.

For more information, please e-mail us at Aqueduct@AditumAlts.com.

1For example, one ’40 Act registered private equity fund of funds with over $1B in Net Asset Value (NAV) has oscillated between cash drag and excessive over-commitment. The fund reported investments in money market funds and CDs (i.e cash equivalents that reduce overall investment returns, creating cash drag) amounting to 28% of NAV as of March 31, 2018. The same fund as of March 31, 2019 and September 30, 2019 was excessively over-committed, reporting unfunded commitments of $732M and $729M, 472% and 789% of the fund’s liquid assets available at those respective times to meet unfunded commitments. As of March 31, 2020, the fund had both excessive over-commitments and cash drag, reporting unfunded commitments of $561M or 319% of liquid assets, which were 19% of fund net assets.
2Evergreen funds are subscribed to by investors via fully paid, upfront cash contributions and engage in continuous, simultaneous fund raising, investment and harvesting/realization. Given the mismatch between the upfront contribution of cash and the private market investment cycle (which draws and then releases capital over time), an evergreen fund may have significant liquid assets and/or over-commit to underlying private investments (in an attempt to increase the capital invested in private markets and reduce liquid assets). Over-commitment introduces the risk that the fund may be forced to sell illiquid assets under duress or default in response to receiving a capital call in an amount greater than its available liquid assets.
3Vintage funds are subscribed to by investors via unfunded commitments and have time limited, largely sequential, phases for fund raising, investment and harvesting/realization. Vintage funds call committed capital from investors only to apply it to private market investments or to pay imminent expenses, and release capital when an investment is re-capitalized or harvested. Though they may sometimes re-cycle harvested capital, typically vintage funds reach peak capital use 4-7 years after launch and distribute harvested capital to investors until the fund is dissolved 10-15 years after launch.

Articles

Press

Founder

Founder

Ken McGuire has over 25 years of alternative investment experience, starting with his tenure at Commodities Corporation, a firm that launched the careers of many notable hedge fund investors.

Subsequently, Ken served as the Co-Head of Operations, Finance and Technology, Chairman of the Operations Committee, and a member of the Management Policy Committee for Goldman Sachs’ Hedge Fund Strategies group.

More recently, Ken was President and Chief Operating Officer of Altegris, where he was a member of the Investment Committee and led the launch of innovative alternative investment products used by investors having a wide range of wealth levels and investment objectives.

Ken founded Aditum Alternatives in 2017.

Content

Contact

Phone :

(760) 978 6621

Email :

hello@AditumAlts.com

Address :

PO Box 9680
Rancho Santa Fe, Ca 92067