Private Markets Fintech Innovation
The transparency implied by the concept of crystal, which XTAL stands for, is the core value that the company consider both imperative for the financial system of the 21st century and significantly beneficial to the private market segment. To this aim, XTAL Strategies has developed a platform that explains and facilitates the risk governance of complex and illiquid instruments, like private market investments, in a way that is beneficial, equitable and effective for both General Partners and investors alike.
By finally solving the private market performance and risk measurement puzzle, XTAL Strategies adds transparency and liquidity to the industry without compromising the asset class characteristics, enhancing its possibility to robustly meet the demand of diversification of a growing potential investor base. This pioneering approach delivers unbiased evaluation standards that both shed light on hidden return components and risk characteristics and allow forward-looking risk management. Because of that, more efficient and dynamic allocation, liquidity decisions, lower dry capital, enhanced risk management, and better compliance come true.
The Company uses a proprietary and patented software for time-weighted analysis and modelling of the risk-return profile of illiquid private market investments making them as simple to understand, price and manage as fixed income-like securities. The methodology translates cash flows and NAVs of physical allocations to private market investments into tradable yields – with potential applications that significantly enhance the fungibility, hence the investor suitability of the asset class.
XTAL Strategies is undisputedly an innovative and disruptive Private Market benchmark provider, delivering rules-based, compliant investable solutions and real time analytics to institutions on the sell- and buy-sides. XTAL Benchmarks are transforming the performance analysis and investment possibilities of investors and the industry’s overall transparency.
Ultimately, XTAL is working on portals and financial technologies for the trading and financing of private market assets, creating the new market of listed and OTC private market derivatives to leverage physically-backed tradable yields and benchmarks, to enable better pricing and liquidity conditions for the asset class, and broaden investor access.
XTAL Strategies works globally in the private market industry with international partners, buy-side and sell-side institutions and retail market intermediaries, and currently operates from offices in London and Milan. For this purpose, XTAL utilises highly scalable and robust cloud solutions on AWS and relies on state-of-the-art SSL/TSL security protocols to protect clients’ and own data.
XTAL Markets Limited performs regulated advisory activities in the United Kingdom and is an appointed representative of Alpha Key Capital, which is authorised and regulated by the Financial Conduct Authority. XTAL Strategies Srl serves as XTAL Strategies continental European hub. The Company has distinctive research and innovation capabilities and resources, including proprietary intellectual property rights patented internationally, to qualify as, and be part of, the selective Innovative SMEs Section 2019-08-29 (PMI Innovative) of the Italian Business Register (www.registroimprese.it). Furthermore, XTAL Strategies Srl has entered a recognition program to become authorised by a financial Regulator designated by the European Securities and Market Authority (“ESMA”) as a Benchmark Administrator in the EU and plans to ublish an IOSCO Compliance Statement affirming its alignment with the IOSCO Principles for Financial Benchmarks.