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Cadence launches Dutch auction system for private credit market

New York-based Cadence Group, a FinTech company providing digital securitization platform for private credit has announced that the company has launched a Dutch auction for new investments made available on its platform.

The new auction system is developed to aid private credit market by helping rebalance the risk-reward equation. The system, which can be used by U.S. Treasuries and other retail investors and institutional debt markets, allows investors and originators to determine a market-clearing APY. It is adding a layer of transparency to Cadence’s platform, giving investors a direct channel to voice their risk tolerance levels, while also ensuring loan originators are given clarity in the bookbuilding process.

“We believe that in periods of heightened volatility as we’ve witnessed recently, a platform that promotes the value of transparency must step up and introduce innovative concepts that push the private credit asset class forward into the mainstream,” said Nelson Chu, Founder & CEO of Cadence.

He further added “What we’re already accomplishing as such a young company in a space dominated by incumbents with sizable balance sheets and significantly larger teams is unprecedented,”

“Securitization hasn’t seen true innovation in decades. Finally, a new wave of fintech companies has made the ability to capture and synthesize data easier. Cadence has positioned itself at the center of that wave, harnessing data to provide a level of transparency and efficiency that has simply never been possible before. We believe Cadence has the opportunity to fundamentally transform securitization for the better,” said Richard D. Parsons, former chairman of Citi, an investor in Cadence.

Founded in 2018, Cadence provides alternative investment opportunities with zero fees.  It has developed a suite of software and services to streamline the securitization process from end to end. It directly integrates to the existing workflows to streamline sourcing, standardizing, structuring and syndicating private credit. The FinTech has also announced that Navtej S. Nandra, former President of E*Trade, Thomas Falk, general partner at Revel VC, and Oliver Wriedt, CEO of DFG Investment Advisors have joined the company’s board of directors.

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