MEROS Equity Global Management, a European Union-regulated financial company, announced on Tuesday the launch of pre-IPO and IPO investments as a new asset class based on the MetaTrader 5 trading platform.
MEROS Launches a New Asset Class
Additionally, the company offers brokers liquidity services for the new asset class. It highlighted that brokers could easily integrate the liquidity asset class via various connectivity provider solutions.
“Private equity is a new trend of the industry. We’ve been witnessing a certain stagnation in the FX & CFD investment assets evolution. Brokers were using the same approaches and trading solutions as they did 5 or 10 years ago, while customer requests and interests have seriously changed through the years. Their eyes are now focused upon new investment ideas and opportunities,” said Abduvoris Kalandar, the Founder and CEO of MEROS.
The Exclusive Private Equities Market
Private equity is a massive market growing aggressively with a rise in startups. It is forecasted to grow at a pace of 9.32 percent CAGR from 2022 to 2027, according to Technavio, a technology research and advisory company. However, the private equity deals slowed down last year as the deals in the US dropped to $922 billion from the previous year's peak of $1.26 trillion.
This market is exclusive and accessible to institutions and accredited individuals. Dealings in this market usually happen behind closed doors and do not allow retail participation.
“One of the highly demanded assets are the shares of well-known and successful Private Companies, such as SpaceX or Revolut, which are impossible to buy from the Stock Exchange. The only obstacle between mass market and venture investments was low accessibility of these instruments due to high entry thresholds. We’ve developed a smart solution to make these stocks available for all traders in the world, and all within the MetaTrader 5 system, with which our clients are familiar with,” Kalandar added.
MEROS owns investment funds registered in the United States, Europe, and the United Arab Emirates. The aggregate adjusted portfolio of the company is at €94 million, and the average profit percentage of the company is at 29.6 percent, according to the company’s website.
The company invests in development stage companies as a small investment in those companies has the potential to bring astronomical profits.
The risks associated with such pre-IPO investments are significant. Although, the industry is not regulated like other publicly-traded asset classes, and the failure rate of startups is also very high.
“The advantages of pre-IPO and IPO instruments are their investment attractiveness and high potential yield. This is confirmed by our latest deals closed with profit up to 1300%. The most promising startups, selected by our analytical partners, conduct funding rounds and become public. This is where their capitalization increases significantly and brings our investors massive profit,” said Yuri Sizov, the Head of B2B of MEROS.
“Being an innovative Broker means always following the trends and adding new instruments and asset classes. It’s time to introduce Private Equity instruments to your retail investors!”
