Funding 101 - Fundraising Resources for Founders

FD Ep. 38 Alex Simpson

Written by Jason Kirby | Apr 18, 2024 3:00:00 PM

Alex Simpson Has $800M to Solve The Liquidity Shortage for Limited Partners in Private Markets with His Company OpenStock

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Alex Shares His Secrets to Opening Up Liquidity for Limited Partners from Their Private Investments

                                   

In this episode, we have Alex Simpson, fintech founder of OpenStock, who shares his story of transitioning from fintech to tackling liquidity problems for investors in private funds. Openstock helps open up liquidity for one of the largest untapped asset classes β€” private credit, private equity, and real estate funds to make it easier for people to access liquidity from their illiquid investments without selling.

Alex discusses how crucial it is for fund managers to manage their Limited Partners’ expectations around cash flow. He shares that partnering with private equity and credit funds lets OpenStock give investors more options. He also gives startup founders great tips, highlighting the need to stay unbiased and steer clear of assumptions when dealing with business partners. Here's what you're in for:

  • 00:00 Intro & Having $800M to Deploy
  • 05:15 Working with private equity and private credit funds
  • 07:09 Building relationships with LPs and funds
  • 12:33 Interesting deals facilitated by OpenStock
  • 21:44 Advice for GPs and managing Expectations
  • 28:44 Understanding LP expectations
  • 30:31 Selectivity in working with funds

ABOUT ALEX SIMPSON

Alex Simpson, a fintech entrepreneur from South Africa, has been living in the US for over four years. With 12 years of experience, he specializes in B2B fintech and has a notable track record in advising and expanding early-stage companies, establishing a significant network in the pre-IPO and late-stage private sector. Alex also serves as an advisor and investor in various fintech companies. He saw a big need for ways to turn private stocks into cash, especially for investors in fund managers that aren't public traded and want more options to access liquidity. So he started OpenStock.

This company gives loans to certain limited partners in large illiquid funds. The company is partnered with an $800M fund to focus on this problem and give out big loans. This helps meet the high demand for cash from private funds, mainly from LPs in well-known funds. By focusing on helping both shareholders and LPs, OpenStock has made a special spot for itself in the market and is getting bigger in the fintech world.

Get in touch with Alex Simpson on:

Linkedin: https://www.linkedin.com/in/alsimpson1/

Website: https://www.getopenstock.com/

Watch it Now

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