Cadence Unlocking Private Credit With Launch of Dutch Auction System
NEW YORK, April 8, 2020 /PRNewswire/ -- On the heels of unprecedented market volatility, Cadence Group, Inc., a leading fintech securitization platform, announced it has launched a Dutch auction for new investments made available on its platform.
This auction system, utilized by U.S. Treasuries and other institutional debt markets, allows investors and originators to determine a market-clearing APY that's desirable for all parties. With the Dutch auction, Cadence is unlocking the private credit market by helping rebalance the risk-reward equation.
The auction system adds yet another layer of transparency to Cadence's platform, giving investors a direct channel to voice their risk tolerance levels, while ensuring loan originators are given more clarity around the bookbuilding process.
"We believe that in periods of heightened volatility as we've witnessed recently, a platform that promotes the value of transparency must step up and introduce innovative concepts that push the private credit asset class forward into the mainstream," said Nelson Chu, Founder & CEO of Cadence.
Cadence also announced the closing of a $4 million seed round led by Revel VC, with participation from Morgan Creek Digital, Nimble Ventures, Argo (NYSE: ARGO), Tuesday Capital, Manatt, and Recharge Capital.
"We're incredibly fortunate to have this group of investors participate in this oversubscribed round," Chu said. "They all come with decades of experience in both financial services and enterprise technology, and they have been instrumental in helping us transform the private credit industry for the better."
Richard "Dick" D. Parsons, former chairman of Citi, also invested through R&R Venture Partners, the early-stage VC fund he launched with Ronald S. Lauder, the current chairman of Clinique Laboratories and a subsidiary of Estée Lauder Company.
"Securitization hasn't seen true innovation in decades," Parsons said. "Finally, a new wave of fintech companies has made the ability to capture and synthesize data easier. Cadence has positioned itself at the center of that wave, harnessing data to provide a level of transparency and efficiency that has simply never been possible before. We believe Cadence has the opportunity to fundamentally transform securitization for the better."
Founded in mid-2018, Cadence has quickly positioned itself at the forefront of private credit. Its retail division, offering an investment platform for accredited investors, has seen a surge in growth since going live in July 2019. Short durations, high yields and zero fees have made Cadence's platform attractive to retail and institutional investors alike. More than $88 million of notes have been issued across 76 offering, with more than $1.3 million in interest paid out and $0 in defaults.
"What we're already accomplishing as such a young company in a space dominated by incumbents with sizable balance sheets and significantly larger teams is unprecedented," Chu said.
As part of the seed round, Cadence announced that Navtej S. Nandra, former President of E*Trade, Oliver Wriedt, CEO of DFG Investment Advisors, and Thomas Falk, general partner at Revel VC, have joined the company's board of directors.
About Cadence
Cadence is the leading fintech securitization platform for private credit. We've developed a platform to streamline the securitization process for specialty finance originators at every stage of growth. Their suite of software and services is built with both institutional and retail investors in mind, integrating directly into their existing workflows and providing exposure to innovative securitized products. Learn more at withcadence.io or on the Bloomberg Terminal at {APPS CADENCE <GO>}.
Contact:
Brian Guerra
Cadence Group, Inc.
646-876-5141
brian@withcadence.io
View original content:http://www.prnewswire.com/news-releases/cadence-unlocking-private-credit-with-launch-of-dutch-auction-system-301037711.html
SOURCE Cadence
