$100 Million Fund
In an announcement made at Consensus 2019, it was divulged that a new $100 million deal has been struck between Rhodium Capital and Harbor.
This deal will see the tokenization of a $100 million real estate investment fund. While the fund itself is a product of Rhodium Capital, the tokenization process is being facilitated by Harbor. This endeavour marks the first STO to take place on Harbors revamped 2.0 platform.
A third company is also in the mix, as Primary Capital will act as a placement agent throughout the process. Above all, this means that they will act accordingly to ensure that this opportunity is provided to only appropriate investors, benefiting, both, participants and the issuing company. Most placement agents will have a pre-existing catalog of qualified investors, which a new opportunity can be marketed towards. Simply put, Primary Capital is the bouncer & promoter, to the party that Rhodium Capital is throwing, in a hall rented from Harbor.
In making their announcement at Consensus 2019, representatives from each of the three companies involved in this deal, took the time to state their thoughts.
John Leo, Chairman of Primary Capital LLC, stated,
“We believe the digital securities model is the future of private capital markets. Our goal as placement agent is to provide global access to capital for our clients.”
Mark Silber, managing partner of Rhodium Capital Advisors, stated,
“There is a shortage of affordable housing in the U.S. and our fund addresses this market need. By offering a tokenized feeder fund as part of our $100M Rhodium Multi-Family II fund, we can better service global investors and provide the growing number of cryptocurrency investors with an alternative asset class for investment into the U.S. real estate market.”
Josh Stein, CEO of Harbor, stated,
“We are excited to work with the Rhodium and Primary Capital teams, our first clients on the new Harbor 2.0 platform, designed to empower traditional financial institutions and create efficient, delightful, digital processes for sponsors, broker-dealers, and investors. Rhodium and Primary Capital are at the forefront of a major shift from the inefficient and analog world of private securities today to a world of digital processes and securities that are more efficient, accessible and liquid.”
Rhodium Capital is an investment company, specializing in New York based real estate. Since their launch in 2012, Rhodium has gone on to accrue over $1 billion worth of properties in the area, with more growth on the horizon.
Company operations are overseen by Managing Partners, Fredrick Schulman and Mark Silber
Primary Capital is an SEC regulated banking firm. From their headquarters in New York, they are able to offer their services to a variety of regions, including, not only, the United States, but China and Europe as well.
Company operations are overseen by Chairman, John C. Leo.
Harbor is a young company specializing in the tokenization of assets. Based in the United States, and founded in 2017, Harbor has developed a comprehensive platform for the creation, issuance, distribution, and management of digital securities. This is made possible through the use of custom ‘R-Tokens’, which are based off of the ERC-20 protocol.
Company operations are overseen by CEO, Josh Stein.
Out with the Old, In with the New
The deal discussed here today may sound familiar. That may be, in part, due to it being reminiscent of a recent deal involving Harbor that fell through. Check out the articles below to learn more about this past endeavour, and what exactly happened.