Jason Granger and Charlie Shrem To Start Up Private Equity Investment Fund
The newly beginning private equity investment platform is in final preparation for launch by blockchain entrepreneurs and advocates Jason Granger and Charlie Shrem. It will be powered by Ethereum and a structured organizational framework focused on transparency and sound investment strategy.
The private equity fund aims to provide transparency to investment portfolios with the immutability of a blockchain and the backing of hard assets. Blockchain technology will be used to facilitate and administer the decentralized fund, which includes token purchasing, dividend payouts and dissemination of investor information.
The organization will consist of two companies, Mainstreet Investment L.P., a Cayman Island limited partnership, of which 30 percent will be owned by token holders and a controlling stake, 70 percent, owned by Intellisys Capital LLC, which will be based in Grand Rapids, Michigan. Granger is CEO of the controlling company in this venture, Intellisys, and Shrem which was released a few months ago from a U.S prison for co-funding BitInstant, will be the CTO.
"Mainstreet Investment is the first private equity investment offered as a digital ledger security that will change the landscape of middle market investment with a decentralized approach," said Granger.
Intellisys plans for Mainstreet Investment to invest in U.S.-based middle market operating companies, real estate and blockchain technology projects. Shrem said that the fund "will not invest in high risk startups," adding, "the initial focus will be on established middle market companies that have already been profitable for a few years."
This strategy will allow Intellisys to gain a foothold in the market and begin generating dividends, giving it the ability to start investing in blockchain technology. "As Mainstreet Investment provides dividends to investors," Shrem said, "we will look at blockchain companies that will be synergistic with our portfolio companies."
To get the project started, Mainstreet Investment will raise funds by distributing an Ethereum-based token, dubbed "MIT" (Mainstreet Investment Token). The initial token offering (ITO) is slated to begin on Jan. 15, 2017 and to end Apr. 1, 2017. The MIT will be available to investors that are not U.S. residents, and to U.S. residents that are accredited investors.