Frequently Asked Questions
Understanding the Altex market
Altex is a private marketplace where alternative assets are bought and sold, enabling companies to access capital, and investors to acquire new assets. Altex merges the benefits of public exchanges with the confidentiality of private deal making. Like public exchanges, Altex aggregates supply and demand in investment assets, supports the listing process, marketing, and due diligence, facilitates asset price discovery, standardizes disclosure and imposes a strict set of rules and regulations to ensure fair dealing. In contrast to public exchanges, the listed assets on Altex remain private and are not subject to on-going responsibilities. There is no continuous trading but instead a one-time sale that occurs through through the Altex platform. Information remains confidential and strictly in control of their owners. As a result, corporate sellers on Altex retain the main benefit of public markets – raising the capital from investors – while upholding flexibility, privacy, and low administrative and regulatory burden of private markets.
Altex is designed for dynamic companies, value-oriented debt securities, and other high potential assets that are suited for privately managed investments with a goal of long-term value creation.
Alternative assets include non-traditional investment opportunities with potential economic value and diversification benefits. Alternative assets go beyond public equities, tradable bonds, and cash securities, and open new investment options in assets that are not available through traditional channels. Altex supports a number of alternative classes, among others:
• Equity shares in private companies (including high-growth companies and small companies that prefer to stay private)
• Private debt securities (secondary bank loans, new private debt issues, distressed debt, restructuring, bankruptcy claims, collateral assets, mezzanine debt, debt-like and convertible securities)
• Infrastructure projects
• Secondary fund stakes (private equity, venture capital, stakes in investment funds)
• Physical assets (real estate, natural resources, commodities)
• Intangible assets (intellectual property, brands)
The role of Altex
The role of Altex is to provide an organized market infrastructure that enables buyers and sellers to close a deal. Altex is NOT an advisor, underwriter, promoter, manager, or a broker-dealer of the securities. Further, Altex is NOT an intermediary or depositary of securities. The transaction of assets listed on Altex is effected directly between the buyer and the seller of the securities. The main role of Altex is to provide platform for information exchange and process oversight of the transaction to facilitate orderly execution.
Altex implements market rules, regulations, and guidelines; screening and monitoring; standardized information disclosure; matching platform; and clearing services. By means of its regulatory environment, Altex oversees an operation of an orderly market that benefits all market participants with lower risks, expanded markets, and a higher level of transparency.
Altex added value
Altex is an independent market through which the private assets are bought and sold. Altex market certifies the quality of transactions, provides means to obtain objective valuation, safeguards information, and assures orderly execution. Altex lowers costs by eliminating intermediaries and eliminating duplicities in screening and information production. In a centralized exchange both investors and sellers can achieve better outcomes.
Raising capital and selling assets on Altex
Altex is a venue for placing private investment offerings to qualified investors in alternative assets that are not available through traditional channels. Altex is designed for dynamic growth companies that prefer to retain their private status and for those that look for opportunities to expand their business with a strong international investment partner. Altex is also suitable for raising funds by issuing new debt or placing existing debt securities. Finally, Altex provides infrastructure for sale of physical and intangible assets. Altex screens assets on a number of criteria, assuring high quality and value-creating potential of applicants and their assets.
A typical lifecycle of a transaction follows these steps:Listing pre-assessment
- Contact Altex to determine indicative suitability for listing (form: Listing Pre-Assessment)
- Appoint a Designated Advisor if applicable
- Listing application
Submit listing application form
- Listing commences - during the listing period prospective investors may request access to further information and submit an Indication of Interest
- Transaction agreement
- Placement closing
The role of a Designated Advisor
Designated Advisors take responsibility for professional services and guidance of asset sellers over the course of the deal flow from origination, through listing, to deal closure and asset transfer. Designated Advisors will:
• Conduct due diligence to ensure the asset’s suitability for Altex
• Provide guidance throughout the listing
• Organize and manage the marketing of the asset
• Establish indicative pricing of an asset
• Co-ordinate and oversee the preparation of listing application
• Act as the primary supervisor of compliance in relation to the corporate seller’s listing
The prospectus is one of the required attachments to the Listing Application Form and plays a central role for investors in assessing the merits of a proposed investment. Due care needs to be taken in preparing this document to assure complete, accurate, and reliable representation of the information about the listed asset. Altex provides Prospectus Guidelines that should address key investment considerations, among others:
• Detailed investment/asset description
• Investment opportunity, value, and growth drivers
• Financial considerations
• Rationale for sellers and listing
• Risk factors
Investing in Altex assets
Investors interested in joining Altex apply for membership via the Investors Application Form. Altex is suited for strategic investors and qualified financial investors with experience in alternative private assets in emerging markets. Investors can access deals directly through the Altex platform or through an approved Designated Advisor who can serve as a counsel to the investor. At all times, a Designated Advisor can be involved only on one side of a deal.
Altex establishes in its rules and regulations measures to protect investors and to uphold integrity of market participants. Altex implements rules on disclosure, transparency of ownership, conflicts of interest, advisor qualifications, and others. Notwithstanding these measures, the ultimate responsibility of investment decisions lies with the investor.