Market Problems Tokenization Solves in Private Equity

Private equity and venture capital suffer from foundational infrastructure problems that tokenization directly solves.

• Secondary Liquidity Bottlenecks: Employee liquidity, tender offers, GP-led secondaries, and LP stake transfers become atomic transactions.
• Manual Capital Call & Distribution Workflows: Smart contracts automate both inflows and outflows.
• High Administrative Overhead: Transfer agents, fund admins, lawyers, and reconciliation cycles shrink substantially.
• Investor Reporting Delays: Tokenization supports event-based reporting-not quarterly PDFs.
• Limited Transparency into Portfolio Companies: Tokenized rails enable data pipelines, milestone updates, and real-time event hashes.
• Barriers for Non-Institutional Investors: Fractional tokenized units democratize access.