Securitization

Securitization is a process that converts assets or economic rights into tradable securities. In most cases, the value of such securities is linked to the performance of one or more underlying assets. Securitizing illiquid or non-bankable assets can often be more efficient than requiring each investor to purchase the underlying asset directly.

Securitization can be seen as an innovative way of pooling financial assets into a single bankable security that can be distributed to multiple qualified investors.

Typical assets that are securitized by professional asset managers are:

• Investment strategies

• Private equity or private funds

• Private loans or private debt

• Real estate

• Digital assets

The most typical types of certificates used to securitize such assets are:

• Actively Managed Certificates (AMCs)

• Tracker certificates

• Credit Linked Notes (CLNs)

The core service providers involved in almost all securitization projects we support are:

• The Paying Agent services the product’s payments and settlements

• The Calculation Agent makes associated calculations such as NAV, interest payments, etc.

• The Corporate Administrator administers the bankruptcy-remote and ring-fenced SPV platform.

• The Custodian is responsible for the safe custody of the strategy’s assets such as equities, bonds, or similar.

• The Broker trades the assets where necessary.

• The Asset Manager allocates cash on a discretionary basis according to a pre-defined investment strategy.

We help coordinate the necessary introductions where required.

In very complex securitization projects, up to a dozen and more service providers might be involved in the process.

We advise clients from the earliest stage of a securitization project, supporting asset selection, structural design, jurisdiction choice and product format. We help translate investment objectives into tradeable products, balancing commercial goals with regulatory and operational considerations to ensure efficient execution and long-term sustainability.

We can coordinate the entire issuance process from start to finish. This includes introductions to and coordination with relevant parties where required, such as the corporate administrator responsible for establishing the Special Purpose Vehicle (SPV) and supporting the preparation of the term sheet and other issuance documentation, the calculation agent, the custodian, the broker, or a licensed asset manager where requested.

Each securitization vehicle is structured to be bankruptcy-remote and ring-fenced, ensuring true asset segregation and providing a clear legal framework for investors.

We also manage ISIN allocation and set-up through SIX SIS, Euroclear, and Clearstream, enabling products to be distributed internationally and settled within existing securities infrastructures.

Where requested, we further coordinate the listing or technical admission of securitized products on recognized exchanges.

Throughout the securitization lifecycle, we deliver ongoing administration, oversight and reporting. Our services cover cash flow management, corporate actions handling and regulatory support - ensuring operational continuity, transparency and compliance while allowing issuers to focus on their investment strategy rather than day-to-day operations.

Securitization offers a variety of significant advantages when compared to traditional investment vehicles. Major benefits include increased flexibility, reduced cost and improved operational efficiency.

• Increased Flexibility: Structure your certificates flexible in terms of seed money, tenor, investment universe, etc.

• Cost-Efficiency: Enjoy both lower setup fees and lower recurring costs compared to traditional investment solutions

• Access to Capital: Gain access to global capital markets and diversify your investor base

• Secondary Market: Trade your strategy on the secondary market and offer your investors easily transferable securities

• Creating a Track Record: Establish a proven track record for investors and grow your business

• Life Cycle Management: Outsource the life cycle management of your investment and focus on developing your projects

• Integrated Administration: Simplify the administration of your investment vehicle and benefit from collaboration with our top service providers .