XTAL, a fintech innovator in the global private market industry, is pleased to announce the official launch of the Private Fund Forward Exchange (PRIFFE), the first all-to-all, institutional derivative risk transfer platform for private market fund interests.

PRIFFE introduces and facilitates risk transfer transactions, like forwards, swaps and OTC option contracts, on unlisted private market fund portfolio allocations as well as interests in individual funds.

PRIFFE bridges the private market functionality gap represented by the lack of derivative solutions. For every other asset class, derivatives complement and amplify secondary liquidity and primary issuance, improving access, portfolio and, critically, risk management.

Till today, private markets’ traditional practices have prevented the possibility of developing derivatives to trade expected returns, to give investors certainty to meet future liquidity needs or hedge portfolios. This fact has left private market portfolios defenseless, exposed to changes in economic and market conditions, like the current events, facing the risk of cash imbalances and shortages, and denominator effect spirals.

PRIFFE exploits XTAL’s proprietary IP to overcome private fund cash flows and NAVs’ opacity and non-fungibility.

Read the full press release here.