Investing into private assets can be fraught with complexity and the Mainspring Investment Platform has the answer
The Mainspring Investment Platform – for Wealth Managers
Wealth Managers are increasingly keen to give their investor clients access to interesting investment opportunities that are ‘off market’ such as into private companies and private funds (Private Equity, Venture Capital, Real Estate, Infrastructure). These opportunities by their nature are often complex and non-standard and staying on top of them during the life of the investment can become a huge administrative burden for the wealth manager.
Mainspring has developed its Investment Platform over the last decade specifically to hold in custody private assets on behalf of individual investors through a sophisticated FCA regulated segregated managed account infrastructure, which remains under the control of the professional manager.
Key Benefits of the Mainspring Investment Platform
Investors and investments from many jurisdictions
Fund manager retains control
Reporting for life of investment
Quick to establish
Low cost to run
Fully FCA regulated
Private asset custody
Mainspring’s expertise in private assets means it understands the complexity of this asset class and can provide sophisticated reporting for investors and their advisers, specifically for complex fund structures. Mainspring is experienced at private equity fund cash calls and can hold funds in anticipation of being drawn down so that no funding deadlines are missed. As custodian Mainspring holds the assets on behalf of each individual investor, so there is certainty of where the asset is, and should there be corporate actions during the life of the investment, Mainspring will stay on top of it and ensure the wealth manager retains control.
Each wealth manager has their own branded platform, which can be established quickly and cheaply, and this has low ongoing administration costs and is simple to operate. All the reporting and administration is provided for the life of the investment and the fund manager remains fully in control.
Mainspring’s capabilities include:
- Open architecture: the Mainspring Investment Platform is infrastructure for the Wealth Manager to introduce investment opportunities that it identifies to its investors. Mainspring does not provide product, but rather the tools to administer private assets.
- Segregated managed account structure: Each investor’s monies and assets are held separately on behalf the investor in sub-accounts, relating to each separate investment as required.
- Unlisted and listed: The Mainspring Investment Platform is a regulated custody platform which can hold both unlisted and via a sub-custody arrangement, listed assets, so once a private company goes public, Mainspring can continue to report on the assets as before and does so today across many global exchanges.
- Investor Services: Mainspring provides a full investor service, including onboarding, account maintenance, portal access, and estate services.
- Co-Investment rights: One of the benefits of investing into private funds and companies are the follow on investment rights. Using Mainspring’s segregated account structure each investor can retain and exercise those rights individually, taking advantage of this powerful incentive of co-investing.
- Funds and direct investments: Mainspring is an expert private asset custodian, and has extensive experience with both investing into companies, and into private asset, private equity and venture capital fund investments.
- Investor Portal: Mainspring provides the investors, their contacts and the wealth manager access to daily reconciled data about their investments including cash movements, transactions and valuations. The portal is used to hold reporting documents and the dashboard provides investors a place where they can view information about their investments.
- Small minimum investments: Since the investors are clubbed together through the nominee structure, the ability to invest smaller amounts per investor (which, together exceed the investment size threshold) is made available.
- Estate cases: Mainspring has over 50,000 investors and advisers on the platform and is fully versed in dealing with situations when investor assets have to be transferred to their estate and beneficiaries.