Limited partnerships (LP) are a lucrative industry and the outcome associated with commercial real estate investing is significant. But there is a lack of secure solutions for managing assets and investments which results in a tedious process. Blockchain technology integration can empower investors to stay organized and streamlined without security hassles by protecting records, legal documents, contracts, and communication.
EXtrance, a brand-new product built on blockchain technology, is explicitly designed to accommodate smaller institutions and limited commercial real estate lending partnerships. Founded by tech investment specialist William Lively, EXtrance’s platform aims to give these underrepresented segments access to the most advanced real-estate total management technology available in the industry, offering complete ease of use. Blockchain technology makes it easier for limited partnership members to buy, sell, and manage their assets.
Providing general partners (GP) with total investor management services, EXtrance is a ground-breaking online investment management tool for capital sources and general partners in real-estate-focused limited partnerships.
The roots of Extrance
Lively’s career story began in the world of investing, which provided him with the experience and insight to create a system that meets the often complex needs of today’s investors. He started at DCI Capital Advisors, one of the first blockchain investment firms in the United States. As a corporate partner, Lively’s responsibilities included fundraising and developing emerging markets. After a successful career at DCI, he changed gears at the end of 2017, leaving to co-found SyndEX Labs. As CEO and President of SyndEX, he has grown the business from a garage startup to a successful, $25 million business.
During his three years at SyndEX, Lively oversaw the development of the first blockchain-based CRE investment system. This system has provided large family offices with divestment services. He also partnered with IBM during his time at SyndEX and worked with the Americas Group to develop SEC-compliant protocols for selected brokers and legal advisors. In May 2020, Lively resigned from overseeing the day-to-day operations of SyndEX to focus solely on EXtrance. He continues to support SyndEX through his activism and as a shareholder. While Lively was well-accomplished at SyndEX, he was a visionary who saw a gap in the market. It needed an AI-powered real estate solution that could easily be used by limited partnerships and small institutions, which tend to be underrepresented in today’s advanced real estate technology.
“Our platform is a holistic approach to solving all of the problems commercial real estate investors face, including that of illiquidity,” states Lively. EXtrance raised capital to develop an all-in-one investment management platform with AI integration, machine learning, and blockchain technology to automate back and middle office functions and facilitate commercial real estate investments.
EXtrance aims to provide incentives to generate interest and avoid potential investor-vendor conflicts. They look to offer rebates on investments for firms or individuals that become customers.
What’s in the Platform?
EXtrance delivers on its brand promises of simplifying the complex, increasing transparency, maximizing security and liberating liquidity while making co-investing, restructuring and onboarding easier. Blockchain, ML, and AI technologies have solidified the foundation of EXtrance and allowed it to build a permission-based access organizational tool that genuinely affects every aspect of commercial real estate or private equity funds.
EXtrance’s three most important components are its private solicitation ecosystem and marketplace, customized investor dashboard, and full-service investor management. By creating a private, online ecosystem for limited partnership investors, private solicitations of investment opportunities can be made, widening the net of possible buyers; lowering potential investment discounts and shortening the time from exit interest to the sale.
“Our platform is a holistic approach to solving all of the problems commercial real estate investors face, including that of illiquidity”
With a personal profile that shows a user’s investment, past performance, and any investment updates, and with many user-friendly AI-based analytical investment tools, investors can truly feel like they are a part of and in control of their investment.
Through its machine learning system and artificial intelligence program, EXtrance takes raw source information from an operating partner and delivers key performance indicators without the need for analysts to dig through numbers and potentially make errors. General partners or fund managers within the organization can upload the documents to the portal. Within minutes, they get real, actionable insights, and key performance indicators to make better-informed decisions.
Utilizing blockchain, AI, and ERC20 contract enforcement, EXtrance brings a new take to investor management. The system is comprehensive, from automated distributions to infallible recordkeeping, strong legal contract enforcement, unique and personalized communication tools, automated tax generation, and benefit maximization tools.
Security and Transparency
Private equity is growing considerably. The need for liquidity is huge in attracting retail investors. The investor portal’s transparency will be the cutting-edge deliverable as key performance indicators will be viewable by the investor in real time. It makes a much more attractive proposal as these funds fluctuate, and fund managers have to comprehend their next investment. Through its investor portal utilizing blockchain and available recordkeeping, EXtrance can provide the industry’s required transparency and cut down administration costs of the fund.
EXtrance is the only firm to offer a private online ecosystem, where it creates opportunities with a larger pool of partnerships. If someone chooses to opt out, finding a replacement investor is made simple through its Solicitation system. Capital governance, the ability to select and distribute capital effectively and in a contracted way, is another key feature that makes EXtrance’s platform an impactful organization tool. C-suite executives can give permission-based access to everyone within the organization, be it the back or the middle office, to log in as analysts and check funds and assets.
However, clients do not have to give up any privacy measures and can ensure that information is not flowing completely unrestricted. The sensitive nature of the data is why EXtrance has built permission-based access where general partners or primary sponsors can customize a profile. EXtrance is reshaping the landscape for limited partners through its investor portal, allowing them to participate in the marketplace, whether within or outside their fund. Clients can take on more limited partners as they have liquidity transparency and inherent technology management.
EXtrance works hand-in-hand with the client, and the firm has a strong human support philosophy. During the onboarding process, EXtrance assesses customers’ needs and assigns account executives to onboard these clients in a manner that aligns with their funds and requirements. While going through the documentation and setting up a new client on the EXtrance platform, the company takes a hands-on approach, and its team member works with the client in-person for a few weeks, creating bespoke versions of extracts with different features and solutions. EXtrance feeds all the client’s historical data into its system, and clients can log in and check their funds, investments, assets, relevant KPIs, limited partners, or any activity on the marketplace. If a partner’s primary sponsor doesn’t want their limited partners to have greater access to the ecosystem, or they want to approve a transaction before a new LP enters, all of those can be customized and built during onboarding. Limited partners have their unique login and gain the ability to invest through the investor portal.
“EXtrance is a ground-breaking online investment management tool for capital sources and general partners in real-estate-focused limited partnerships”
For instance, EXtrance took on a fund that was both an operating partner and the capital partner. It was an interesting challenge because they were having a hard time managing all the data that they were receiving from their assets while still being the capital partners. EXtrance took some of the rawest data and through its machine learning program, interpreted data that were not in stable formats using optical character recognition (OCR) technology. EXtrance restructured the fund and provided the client with actionable insights that helped to grow their fund through the company’s blockchain and AI-based marketplace, and successfully raise additional capital to acquire more assets.
What Lies Ahead?
Thousands of data points that would take months to process take only minutes on the EXtrance platform, which is not only helpful for asset management, but also for reducing dead deal costs or analyzing an investment for purchase. EXtrance boasts a team of private equity, tech, and finance professionals. Innovation is the engine at EXtrance and the company has hired the right people to fill gaps and provide different perspectives for crucial decisions.
Forging ahead, EXtrance will remain focused on real estate, where there is room for innovation, and is planning to enter into different verticals such as oil and energy funds. The company has already dedicated resources to exploring verticals such as venture capital and alternative energy sources.