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Allocations Raises $4m at $100m Valuation

Small fund managers traditionally have a hard time getting in on ventures before they close. There simply isn't enough time for small funds to get into deals in a guarded industry full of high net worth individuals and venture capitalists with funds standing by.

Allocations, an end-to-end private equity platform, enables investors to create private equity deals with a one-click experience - starting with SPVs & Funds. Their SPV creation software and process streamline fundraising, decreasing the amount of time needed to get funds into a deal. This gives smaller net worth investors an edge and a higher chance of getting into deals before they disappear.

1. Democratizing Private Equity for All Investors and Businesses 

An existing company creates an SPV, which is a subsidiary company used for a specific purpose. Allocations uses SPVs to consolidate fundraising efforts for small fund investments. Here are a few reasons that an SPV created by Allocations helps investors:

•      The private equity industry is ruled by high net worth investors that have the funds to swoop in on deals before small angel investors can get into them. 

•      The amount of work needed to put together an SPV is substantial. Lawyers are involved, and the process can take months—much too long for investors that need to close on a deal in under 24 hours. The platform helps investors fund an SPV in under 24 hours at a fraction of the normal cost of creation. The company record so far for creating an SPV from start to finish is three hours. 

•      Allocations software speeds up the pace that SPVs are built. This speed lets smaller private equity investors gain exposure by pooling resources. Both angel investors and startups benefit from the agility the SPV development platform provides. More investors can put together larger funds, and more ventures become available to those investors.

2. Headquarters in Miami

Formed initially in Silicon Valley, Allocations relocated in December 2020 based on tweets from real-estate-attorney-turned-mayor Francis Suarez, who, in a sense, asked investors how he could help facilitate a move to the rapidly growing tech startup hub of Miami via social media.

As a storm of tech companies and venture capitalists worked on location solutions to help them get away from Silicon Valley, Allocations packed up, moved in, and began expanding.

3. Our Rapid Expansion

After the move to Miami, Allocations began to expand.

•      The company reached a valuation of $100 million before its second year.

•      Allocations increased in size from 20 to 70 employees in less than a year and increased the number of private equity funds it works with to more than 300.

•      The company has experienced year-over-year monthly growth of roughly 28% as it poises itself to take over the Miami venture market.

•      Demand continues to grow for Allocations' fund administration platform as emerging investors discover how to coordinate their investing. This is demonstrated by the need to keep adding more team members to meet its forecast demands and expand products to meet the needs of small funds investments.

4. The Future of Private Equity

Kingsley Advani launched Allocations in 2019 as a private fund administration platform that gives smaller private equity funds the ability to deploy capital quickly. Software is the key to Allocation's popularity explosion. It forms an entity, helps find interested investors, onboards them, fills out forms, calculates the fees and generates investor filings. The process makes it easy and fast for investors.

•      Small VCs quickly get into deals with other like-minded VCs, the deal closes, and Allocations distributes capital after liquidity events.

•      Emerging or smaller investors are no longer blocked by larger VCs.

•      Funding a special purpose vehicle through crowdsourcing and pooled funds is becoming more popular with younger investors since it creates a path to an investing world only a limited few were able to gain exposure to.

•      Allocations' platform and model make it easier for everyone to invest in venture firms, not just investors that already have large portfolios and an ability to liquidate funds quickly into a deal.

10,000+ investors and fund managers build, raise, and close funds on Allocations — the fastest and most advanced fund platform in the world.

Build your next SPV or Fund today


Disclaimer: The information provided in this document does not, and is not intended to, constitute legal, tax, investment, or accounting advice; instead, all information, content, and materials available are for general informational or educational purposes only and it represents the personal view of the author. Please consult with your own legal, accounting or tax professionals.