Efficiency and economies of scale in the new fund platform – The Royal Gazette

Updated: Sep 17, 2021 5:14 PM

Bermuda-based investment management firm DigitalArray ISAC Ltd has announced the creation of its DigitalArray fund platform.

The company said the platform allows some investment companies in the digital asset space to launch new funds quickly and cheaply with the support of top service providers.

DigitalArray also announced the launch of the initial fund on the platform, Alpha Sigma Capital (Offshore) ISA.

Enzo Villani, Chief Investment Officer and Managing Partner of Alpha Sigma Capital Fund, LP, said: “The creation of the Bermuda entity with DigitalArray was an important step in providing access to our international sponsors and investments. We leverage the best infrastructure partners for our funds so that we can focus on performance. “

DigitalArray President Lawrence Newhook added, “With the explosive growth of digital assets, we saw an opportunity to tap unique sources of disproportionate return from these markets. We created DigitalArray to enable investors to access these cutting-edge offerings with the institutional grade support and infrastructure that was largely lacking in this burgeoning asset management niche.

The company said the DigitalArray platform offers the efficiency and economies of scale of a fund platform, providing unusual flexibility with an innovative structure that can accommodate virtually any type of regulated fund. This includes both public and private companies, SPVs, masters and feeders taxed as US partnerships or corporations, as well as funds marketed to institutional or high net worth investors around the world.

Nicole Biernat, COO, said: “Many new digital asset managers have a knowledge base and networks in the crypto world, but are unfamiliar with the industry structure, operations and regulations. asset management.

“We realized that combining our team’s deep expertise in running asset management firms with the ability of these portfolio managers to extract extraordinary uncorrelated returns would create investment funds that would attract top managers. institutional investors, paving the way for access to the digital asset space. next level. “

Sarah Demerling, Partner at Walkers (Bermuda) Limited Law Firm, said: “Bermuda has been a pioneer in FinTech and has been recognized internationally as one of the world leaders in the fight against money laundering and terrorist financing.

“The Bermuda government set the stage for the development of the island’s fintech sector in early 2018 with cutting-edge digital asset legislation and has seen incredible success. It is only natural that funds seeking to invest in this area choose Bermuda. We were delighted to work alongside the DigitalArray team to create this unique solution. “

David Burt, Premier, said: “We are very excited about the launch of the DigitalArray investment platform, which demonstrates the interconnectivity of Bermuda’s expanding fintech ecosystem, and the value of reducing frictions and promoting the integration of digital asset expertise into traditional financial institutions. .

“The Bermuda government has remained focused on providing a clear risk management framework that enables companies like DigitalArray ISAC Ltd to be innovative and build the future of finance here in Bermuda.

“The growth of Bermuda’s fintech industry depends on the successful interaction between traditional financial institutions and the digital asset industry.

“DigitalArray is a valuable addition to the expanding network of companies driving innovation in Bermuda. “

DigitalArray ISAC Ltd stated that it is a global asset management company designed to provide institutional and high net worth investors with access to various sources of true alpha from digital asset markets including cryptocurrencies, blockchain technologies and challenge markets.

He said his core team consists of talent from leading companies in the investment industry, including Goldman Sachs and Point72 Asset Management.

The company was founded in 2021 and is headquartered in Bermuda.

DigitalArray has stated that it is not engaged in a “business activity in digital assets” as that term is defined in Bermuda’s Digital Asset Business Act 2018, which would require it to obtain a license under DABA . DigitalArray has therefore not requested and is not licensed under DABA, he said.

Digital Array has stated that the Alpha Sigma Capital (Offshore) ISA Fund is a separate incorporated account of DigitalArray ISAC Ltd and is regulated by the Bermuda Monetary Authority as a Class B professional fund.

The fund is managed by Alpha Sigma Capital Advisors, LLC, a United States-based investment advisor, and provides investors with exposure to a range of digital assets and equity investments in digital asset companies.

Alpha Sigma Capital Advisors was founded in 2020 by Mr. Villani.

Sarah Demerling, Partner at Walkers Bermuda (File photo)

Lawrence Newhook, President of DigitalArray (Photo provided)

David Burt, Prime Minister (file photo by Akil Simmons)

Enzo Villani, Chief Investment Officer and Managing Partner at Alpha Sigma Capital Fund, LP (Photo provided)

Nicole Biernat, Director of Operations at DigitalArray (Photo provided)

About Aldrich Stanley

Aldrich Stanley

Check Also

3 steps to help your business survive the changing market

Like many entrepreneurial businesses, Farmer’s Fridge had to significantly adjust our operations during the pandemic. …