FNEX (FNEX, LLC) was launched in late 2014 to fill a market void and create a new private securities marketplace. The FNEX platform launched in September of 2014. FNEX provides advisors, institutional investors, private equity groups, family offices, and accredited investors expanded alternative investments. Listings on its alternative platform are from investment banks and include primary offerings of private placements, hedge funds, and managed futures commodity offerings. FNEX was created to aggregate these offers and serve as a centralized “private securities marketplace.” Investment through Reg D offerings into Alternatives exceeded $1.7T in 2012, 40% larger than funds flowing into the public equity markets. This occurred despite the inefficiencies and current ad hoc approach to sourcing, evaluating and investing in alternatives. Further, only 3% of potential (accredited) investors participated in this market. Investment banks have been restricted to offer these securities to those firms and investors with whom they previously had relationships. This makes growing a list of potential capital sources difficult and placement of offerings highly inefficient for most small to mid-size banks. FNEX provides distribution solutions for both before and after the enacting of JOBS Act-related regulations. As FNEX is a password-protected site that offers deals to accredited members. FNEX develops the necessary relationship to market offerings as soon as the user engages in the initial sign-up process. This ease of access enables FNEX to reach a number of client relationships well beyond a typical investment banking operation. Further, our integration with multiple custodian platforms expands issuance visibility. FNEX aims to become the Alternative Investment Platform of choice by RIAs, custodians, family offices, private equity, institutions and high net worth individuals. Our platform streamlines deal discovery, evaluation and the transaction process. FNEX targets small to mid-market investment banks and offers those groups a means to list their offerings on the FNEX platform for visibility to a much wider investor audience. The FNEX will allow its partner broker-dealers to list their offerings for free. If an investor on the FNEX invests in the partner’s offering FNEX will share in the associated fee of the offering broker’s proceeds on a pro rata basis. FNEX will also offer its partner brokers a fee share for purchases made by the investors they push to the platform. This structure allows the broker partner to cast a wide net for investment in their private placements, as well as monetize the relationships it has with investors that may participate in offerings outside of the broker’s business line. Further, banks can utilize our VDR for free. Traditionally, hedge fund offerings have been available only to the extremely wealthy and institutional investors. Because funds are unable to directly market their investments, the cost of capital introduction/attainment has been high, particularly for emerging managers. These groups have no or small marketing teams and have focused on large investors due to the high cost of customer acquisition. Hedge funds are looking for a means to distribute their investment vehicles, and they do not have the internal skills or resources for a broad marketing campaign. The FNEX provides them a solution. Now, hedge funds can list, for free, on the FNEX and broadly circulate their offerings to investors on the platform. The fund only pays the FNEX if they receive a subscription originating on the platform. As FNEX has an affiliated broker-dealer which earns revenue from broad securities offerings. FNEX seeks to be a smaller part of many deals, instead of a larger part of few deals. FNEX believes that it can be successful by collaborating with other firms in the market, rather than competing. FNEX’s alternative investment platform focuses on Private Placements, Hedge Funds, and Commodity offerings; and will soon offer Metals Depository and Securitized Real Estate. FNEX collects a success fee or subscription fee on any transaction resulting from an investor on FNEX investing in an offering on the platform. FNEX is the only centralized source for accredited investors, qualified investors, institutional investors, and family offices to source alternative investment opportunities. Investors can examine a deal and complete an investment on the platform. FNEX is the most comprehensive source for private securities investment offerings in the market.
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