Sourcing and evaluating private fund porfolios takes money and time, and the modern insititutional porfolio requires greater exposure to alternative assets with lower fees.
Evaluate dozens of funds at scale and connect directly with the manager at no cost. Velvet provides private fund listings at scale, operational due diligence reports, and the tools to implement them into client porfolios.
From the pits of the 1980s, to the trade desks of the 1990s, to computer execution in the 2000s, the finance sector is now almost entirely online. Long gone are the days of calling your stockbroker to move a position or market makers working on exchange floors.
However, private markets stayed analog: phone calls, golf games, and conferences are still staples of the industry. For some, this can be beneficial. For most, it significantly slows down the process while increasing the cost to both allocate and fundraise.
Manual processes are very inefficient.
Most allocators have a team of analysts sourcing and evaluating deals, which can cost thousands of man-hours to build a fund portfolio. Smaller allocators send their principals to conferences to source deals, taking up valuable time that should be used making better investment decisions.
A large portion of the allocator market doesn’t participate.
Due to the overhead of managing private fund investments, lack of access to the right networks, and lack of understanding in the space, a huge number of investment advisors, UHNW individuals, and family offices cannot add private funds to their portfolio - despite significant advantages for risk-adjusted returns.
Decisions aren’t objective.
Because deals are sourced from an allocator’s network, they tend to involve a lot of personal dealing, FOMO, and too many qualitative factors. Funds are also very diverse, and each has unique factors to evaluate which makes it difficult to compare one fund to another. This hurts returns, and makes portfolios less efficient.
Time wasted vetting managers.
There’s no good way to know a manager’s ability before moving into deeper diligence. Allocators spend time on a fund.
Here’s how we tackled these problems.
Source funds in a marketplace, not a database.
Databases lack quality and efficiency. Cold outreach doesn’t work. On Velvet, fund managers maintain their own listings and are required to keep information up-to-date during a fundraise. Allocators can discover and evaluate funds in parallel, instead of one by one, then connect with them instantly. No cold outreach, no conferences, no plane flights.
See all of the information you need before the first meeting.
Allocators spend too much time in meetings with managers before having the appropriate context, and end up reviewing dozens of fund decks. We’ve standardized how you see the information, so you can easily compare one fund to another.
Data-based decision making.
Velvet collects significant in-depth information on every fund, and our goal is to increase the number of inputs allocators use to make investment decisions. The ability to use more data makes it easier to figure out where a fund fits in a portfolio.
Curated listings, but not an investment committee.
Unlike consumer-facing solutions, we’re focussed on delivering high-quality funds at scale and do not advise on which funds to invest in. However, every fund on Velvet has been through our diligence process so you can know you’re looking at high quality listings in a diverse set of categories.
Don’t limit yourself or your firm to your broker’s shortlist. See the whole picture of the private fund marketplace. Velvet curates hedge funds, venture capital, private credit, and private equity at scale. Our listings platform makes it easy to find funds based on mandates, categories, fund types, asset exposure, size, returns, and more.
Even though it’s simple, Velvet supports investments from authorized third parties investing on behalf of entities and individuals. We built it for investment advisors, family offices, endowments, pension funds, trusts, fund-of-funds, governments, soveriegn wealth funds, and other institutional clients.
All depictions on this site are fictional and do not represent real investment funds. Any investment funds displayed to the public on this site are for illustrative purposes only.
velvetfs.com is a website owned and operated by Decheque Inc. (DBA “Velvet” or “Decheque”), which provides SaaS tools and technology, and lists information pertaining to financial performance, personnel, and hedge fund and private fund management profiles. Velvet fosters communication between parties. Velvet does not solicit its services to non-accredited investors or non-qualified purchasers. Velvet is not a broker-dealer and does not offer securities. Nothing in this website is intended to be an offer to buy or sell securities. All securities are offered through Decheque Securities LLC, a member of FINRA, SIPC, and a wholly-owned subsidiary of Velvet. For more information regarding Decheque Securities, LLC, please visit FINRA BrokerCheck.
A private placement is an offering of unregistered securities to a limited pool of investors. In a private placement, a company sells shares of stock in the company or other interest in the company, such as warrants or bonds, in exchange for cash.
The following represent some general disclosures in regards to private placements. This list is not exhaustive, and potential investors should carefully review each prospective investment and the risks specific to such investment.