At long last

August 14, 2023

Finally, two years after we first kicked off the discussion around becoming a broker dealer, we officially have our application approved. To say this was a journey is an understatement - the amount of times we had to explain what we do, outline how our business operates, answer the same questions again and again, and then re-explain all over to another group who needed the same explanation but worded differently, was an exercise in persistence like nothing we’ve ever seen before. But there was a reason we stuck with it. The potential of what a broker dealer license can unlock for us is incredible and we are a transformed business as a result of it.

Servicing fees is just the starting point, although being able to charge our investors for all the deals they invest directly into is a fantastic start. By taking 10% of the yield, we effectively double our ARR almost immediately.

We’ve also run into situations in the past where institutional investors and underwriters need and want their partners to be a broker dealer in order to invest and work with them. This expands our pipeline in a way that we just simply couldn’t access before and brings us closer to hitting our targets on both AUM and client count.

Beyond just private credit, we can also offer truly new asset classes for the very first time. We have underwriters who operate funds that would love to be able to tap into our investor base and there’s no shortage of other new asset classes from there that we can expand into.

Last but not least, to close the loop on the transaction process, we can go from sourcing to structuring to syndication to servicing to surveillance and finally secondaries. Our 5 S’s formally becomes 6 and we can extract even more revenue from investors buying and selling in and out of their positions.

Full service capital markets infrastructure, that’s what we can unlock with this broker dealer license and it couldn’t have come at a better time