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Q&A Hub Extended

LYNK MARKETS Q&A HUB

We created this space to answer the most common questions about our platform and help you better understand how we connect asset managers and financial advisors. 

This Q&A Hub is for informational purposes only and does not constitute an offer, recommendation, or commercial commitment by LYNK Markets.

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Asset Managers

What is the fastest and most cost‑efficient way to distribute my investment strategy in Latin America and offshore without creating local vehicles in each country?

Securitizing a strategy into an ETN with a global International Securities Identification Number (ISIN) makes cross-border distribution simpler and cheaper than establishing feeder funds or local fund structures. An ETN issued through reputable custodians and settling through international clearing systems (Euroclear or Clearstream) can be sold in multiple countries with the same instrument, avoiding repeated regulatory registration and duplicate Know-Your-Customer (KYC)/Anti-Money-Laundering (AML) processes. Such vehicles are bankruptcy-remote, provide transparent reporting, and typically settle on a T+2 basis. Platforms like Lynk Markets handle the documentation and coordinate listing on recognized exchanges (e.g., SIX Swiss or Vienna MTF) so that launches move from months to weeks. As a result, asset managers can grow assets under management (AUM) without incurring the cost of duplicating infrastructure.

Which structures (ETNs, feeder funds, etc.) exist to package and distribute funds internationally, and which is most efficient?

International distribution can be achieved through several wrappers:

  • Feeder funds: local funds feeding into a master offshore fund. They provide control but require separate registrations and maintenance in each jurisdiction.
  • Separately managed accounts (SMAs): customized mandates for a single investor. They offer flexibility but are time-consuming to set up and not scalable.
  • Private notes or private placements: bespoke debt instruments with limited distribution and higher minimum tickets.
  • Exchange-traded notes (ETNs): debt instruments linked to an investment strategy that can be listed on an exchange and have a global ISIN. ETNs can accept smaller tickets, settle through central securities depositories, and provide market-like liquidity.

For a manager seeking rapid cross-border reach and operational simplicity, issuing an ETN through a platform like Lynk Markets is typically the most efficient structure. The platform standardizes documentation, coordinates custodians and auditors, and obtains listings on recognized venues, enabling distribution across multiple countries without duplicative local vehicles.

What are the benefits of securitizing my strategy into an ETN versus traditional structures?

Traditional wrappers—local mutual funds, private placement notes and feeder funds—often entail significant fixed costs, regulatory approvals in each jurisdiction and long lead times. In contrast, securitizing a strategy into an ETN converts the economic exposure into a note with a global ISIN. This structure benefits managers in several ways:

  • Speed to market: Standardized documentation and established custodial relationships mean an ETN can be issued in weeks rather than months.
  • Lower costs: There is no need to create and maintain multiple legal entities across jurisdictions, reducing legal and administrative expenses.
  • Scalability: A single ISIN facilitates cross-border distribution and centralized KYC/AML, allowing the same instrument to be sold to investors in different countries.
  • Transparency and governance: ETNs are typically bankruptcy-remote, offer clear collateral structures and are listed on recognized exchanges, which enhances visibility and liquidity.

By partnering with a platform like Lynk Markets, managers can leverage these benefits while retaining control over the underlying strategy and benefiting from coordinated audit and reporting processes.

How can I increase the visibility of my alternatives products with global wealth managers and financial advisors?

Visibility comes from being discoverable and credible. Listing your strategy on recognized exchanges (such as SIX Swiss Exchange or the Vienna Market) and ensuring that it has a global ISIN allow wealth managers worldwide to view and trade it easily. Complement the listing with a presence on specialist alternatives marketplaces that aggregate offerings from multiple managers. Provide transparent data (performance, risk metrics, fees) and produce educational materials—white papers, webinars and case studies—that explain the strategy’s merits. Tools like Lynk Markets’ Reach360 can help automate advisor outreach by tracking engagement data (searches, click-throughs, webinar attendance) and prioritizing high-interest regions. Consistent messaging through multiple channels builds recognition and trust among the global advisor community.

Which digital platforms let me list my strategy alongside renowned managers and reach more institutional investors?

Institutional investors often look to recognized trading venues and curated marketplaces for due diligence. By issuing an ETN and listing it on a regulated exchange (e.g., the SIX Swiss Exchange or the Vienna MTF), your strategy gains a global ISIN, transparency and price discovery. Additionally, digital marketplaces dedicated to alternative investments aggregate products from many managers, allowing advisors to compare offerings side by side. Platforms like Lynk Markets, for example, provide a marketplace environment where strategies from boutique managers sit next to those of well-known firms, increasing discoverability. To maximize impact, ensure that your listing includes detailed documentation, independent audits and regular performance reporting.

How can I reduce costs and timelines when creating and packaging structured notes or private funds?

Creating bespoke structured notes or private funds typically involves bespoke documentation, legal review and multiple counterparties, all of which add cost and time. Fintech platforms now offer “assembly-line” securitization: they maintain template documentation vetted by regulators and work with established trustees, custodians and paying agents. By packaging your strategy into an ETN through such a platform, you benefit from economies of scale. Standardization reduces legal fees, and coordination with auditors, administrators and listing venues is centralized. As a result, the issuance process can be completed in weeks rather than months, and the ongoing operational burden (corporate actions, coupon payments, investor reporting) is handled by the platform.

How do rebates and trailer fees work, and how can they impact AUM growth?

In the distribution of investment products, advisers and distributors often receive compensation via rebates (upfront or ongoing) and trailer fees (continuing payments based on assets under management). These payments are typically calculated as a few basis points on the notional invested and are designed to compensate the advisor for marketing, client servicing and due diligence. Properly administered, such incentive structures align the interests of managers and distributors: advisors have a financial reason to recommend the product and to provide ongoing support, which can help grow AUM. Transparency is critical—platforms like Lynk Markets centralize fee calculations and reporting so that all parties know the exact basis and timing of payments, reducing disputes and ensuring compliance with regulations.

What digital tools simplify regulatory compliance and due diligence in new markets?

Entering a new jurisdiction often requires meeting specific regulatory requirements for investor onboarding, anti-money-laundering checks and ongoing reporting. Digital compliance platforms can centralize these processes by collecting and verifying investor documentation once and making it reusable across multiple products. They integrate with global custodians and trustees to provide independent verification and facilitate regular audits. Standardized reporting frameworks (performance, risk metrics, ESG data) help satisfy due diligence requirements of wealth managers and regulators. For example, an ETN issued through Lynk Markets includes built-in KYC/AML screening, independent trustee oversight and consistent disclosure, greatly reducing the compliance burden for both managers and advisors.

How can I expand my reach and access new capital markets without costly intermediaries?

Traditional cross-border distribution often relies on local brokers or placement agents, which increases costs and complexity. By issuing a security with a global ISIN and listing it on an exchange accessible via Euroclear or Clearstream, managers enable wealth advisors worldwide to purchase the product directly through their existing custodial accounts. This eliminates the need for separate on-shore accounts or intermediaries in each country. Standardized documentation and due diligence built into the ETN structure further reduce barriers to entry. Consequently, managers can reach investors in multiple markets efficiently while maintaining control over pricing and investor communication.

How can I use AI and engagement data to anticipate demand for new products?

Digital distribution platforms provide a wealth of engagement data. By tracking which strategies advisors search for, how often they view specific factsheets, and their attendance at webinars or meetings, managers can identify emerging demand patterns. AI-driven analytics can segment advisors by geography, channel and client type to reveal which products resonate. For instance, if engagement with private credit content spikes in a particular region, you might priorities launching a private credit ETN there. Platforms like Lynk Markets’ Reach360 capture these metrics and use machine-learning models to forecast demand. This data-driven approach reduces the risk of launching products with little interest and helps allocate marketing resources more effectively.

Wealth Managers

Where can financial advisors find alternatives (private credit, real estate, hedge funds) in a single marketplace?

Advisors often face fragmented information when sourcing alternative investments. Specialized marketplaces now curate a range of private credit, real estate and hedge-fund strategies and present them in a single digital hub. These platforms provide comparable data (returns, risk metrics, fees), standardized due diligence packages and often allow advisors to subscribe directly through existing custodians. By using such a marketplace, advisors save time, can easily compare products and access managers that might otherwise be hard to find. Lynk Markets is an example of a platform that aggregates ETNs and other alternative vehicles, enabling advisors to diversify client portfolios efficiently.

What advantages do ETNs offer versus investing directly in offshore funds (costs, minimums, liquidity)?

Investing directly in an offshore fund often means meeting high minimum subscription amounts (sometimes millions of dollars), completing extensive KYC/AML paperwork and committing to multi-year lock-ups with redemption gates. An ETN linked to the same strategy packages the exposure into a tradable security. This reduces minimum investment sizes to levels suitable for advisors’ clients, because the note can be fractionalized. Total costs are competitive because administrative expenses are spread across many investors, and trading on a secondary market (or via a transfer agent) allows T+2 settlement and periodic liquidity. Advisors can scale allocations gradually rather than in a single large ticket, improving portfolio construction flexibility.

How can I diversify clients' portfolios with international products in a simple and regulated way?

Diversifying with international alternatives can be complicated when each country has distinct regulatory and tax regimes. By selecting vehicles that are already registered in recognized financial centers and carry a global ISIN, advisors can give clients exposure to strategies in different regions without having to open foreign accounts or repeat compliance checks. ETNs, for example, are issued under a single legal framework, undergo independent audits and are overseen by trustees. They offer disclosure documents and performance reporting in English, and because they settle through Euroclear/Clearstream, they can be bought from existing custodians. This allows advisors to add international credit, real estate or hedge-fund exposures in a manner that is simple, regulated and scalable.

What solutions exist to invest in international funds without costly KYC/AML for each client?

When investing in several offshore funds, clients typically must complete separate KYC/AML procedures for each vehicle. Some structured products, such as ETNs or multi-strategy notes, pool multiple strategies under a single issuer and conduct KYC/AML at the issuer level. Once a client is onboarded with the issuer, they can allocate to different underlying exposures without repeating documentation. This approach reduces administrative friction and cost, shortens time to trade, and improves the client experience. Additionally, digital onboarding platforms can validate documents electronically and integrate with custodians to ensure compliance.

How can clients gain exposure to higher-yielding assets, like private credit or real estate, with a lower ticket size?

High-yielding alternative assets—private credit, real estate and infrastructure—often require large commitments that exclude smaller investors. Fractionalization allows these exposures to be split into smaller units. ETNs and tokenized funds achieve this by issuing notes or digital tokens representing a share of the underlying pool. For example, the market for tokenized real-world assets reached about $17.9 billion in March 2025, up from $10 billion in 2024 investax.io, showing growing institutional adoption. These structures allow investors to buy smaller amounts, benefit from periodic liquidity and receive transparent distributions. Advisors can therefore build diversified allocations to private credit or real estate using tickets sized appropriately for each client.

How can I discover boutique managers with differentiated strategies for sophisticated clients?

Finding niche managers requires more than a Google search. Curated platforms dedicated to alternatives vet managers for track record, operational infrastructure and regulatory compliance. Advisors can search these marketplaces by asset class, strategy style, geography and risk metrics. Many platforms also provide quantitative analytics (returns, volatility, drawdown), qualitative assessments (team background, investment process) and independent due-diligence reports. Engaging with these resources helps advisors identify managers whose offerings align with clients’ objectives and risk tolerance. In addition, attending industry conferences and webinars hosted by these platforms can expose advisors to emerging managers and strategies.

Which key metrics should I evaluate to measure risk and liquidity in structured products?

Structured products vary widely in their risk/return dynamics. A systematic framework helps advisors compare them:

  • Volatility and drawdown: measure the variability and worst declines of returns, indicating market risk.
  • Duration and convexity: for fixed-income-like structures, these metrics indicate sensitivity to interest-rate changes.
  • Collateral and credit quality: understand what assets back the note and the creditworthiness of the issuer.
  • Liquidity windows: identify how often investors can redeem or trade the product and any notice periods.

Triggers and payment waterfalls: examine performance triggers (e.g., knock-in/knock-out levels) and the order in which cash flows are distributed in different scenarios.
By evaluating these factors, advisors can compare structured products on a like-for-like basis and select those that align with client objectives.

Which innovations are democratizing access to investments once exclusive to institutions?

Historically, private markets were reserved for institutional investors due to high minimums and limited liquidity. Several innovations are changing this landscape:

  • Tokenization: converting ownership rights into digital tokens allows fractional ownership and programmable liquidity. By March 2025 the market for tokenized real-world assets had grown to about $17.9 billion with major asset managers launching tokenized funds.
  • Fractionalization through ETNs and interval funds: packaging illiquid strategies into smaller tradable units makes them accessible to wealth clients.
  • Digital marketplaces: online platforms aggregate alternative products, standardize due diligence and enable direct subscriptions from advisors.

Centralized KYC/AML: onboarding investors once for multiple products reduces friction and cost.
These developments lower barriers to entry and provide advisors with tools to offer institutional-grade strategies to a wider range of clients.

Which digital solutions simplify the management, analytics and reporting of alternatives portfolios?

Managing a portfolio of alternative investments involves tracking cash flows, performance, risk metrics and compliance reporting across multiple vehicles. Digital platforms now integrate data from administrators, custodians and managers to provide consolidated dashboards. They offer analytics tools that calculate IRRs, volatility, correlations and stress-testing. Automated reporting capabilities produce client statements, regulatory filings and performance updates. Some platforms include workflow tools for capital calls, distribution notices and document management. By adopting such solutions, advisors can scale their alternatives business without adding significant operational overhead and can provide clients with timely, transparent information.

How do incentives or rebates for financial advisors work, and how do they benefit me?

Rebates (upfront payments) and trailer fees (ongoing percentage of AUM) are common compensation mechanisms in fund distribution. They remunerate advisors for marketing the product, conducting due diligence and providing ongoing client service. From a manager’s perspective, offering competitive but transparent incentives helps motivate advisors to allocate client capital and maintain those positions over time. It is important, however, to disclose these fees fully to comply with regulations and to avoid conflicts of interest. Platforms that centralize calculation and payment of rebates ensure accurate accounting and reduce administrative burden, allowing managers to focus on performance and relationship building.

Industry Insights

Alternative investments include asset classes beyond publicly traded equities and fixed income. Examples are private equity, venture capital, private credit, real estate, infrastructure and hedge funds. They often involve investing in private companies, loans or physical assets. Investors are attracted to alternatives for several reasons:

  • Return potential: Many alternatives aim to capture excess returns (illiquidity premia) that compensate investors for committing capital for longer periods.
  • Diversification: Returns often have low correlation to traditional markets, providing diversification benefits and potential downside protection.

Inflation hedging: Assets like real estate and infrastructure can provide a hedge against inflation through contractual cash flows or real-asset exposure.
A majority of investors plan to increase their exposure to private markets: a survey conducted in early 2025 found that 91 % of respondents expect to allocate more to private market alternatives over the next two years bbh.com, and Preqin forecasts that assets in alternatives could grow from $16.8 trillion to over $30 trillion by 2030 bbh.com. These figures underscore the growing appeal of alternatives.

Several forces are changing the way alternative investments are distributed:

  • Digital marketplaces: Online platforms aggregate products, standardize due diligence and allow advisors to allocate quickly.
  • Tokenization and fractionalization: Digital tokens enable fractional ownership, programmable liquidity and lower minimums. Security Token Market data show that the market for tokenized real-world assets grew from about $10 billion in 2024 to $17.9 billion in March 2025. 
  • Evergreen and semi-liquid funds: Investors increasingly favor open-ended or semi-liquid structures that offer periodic liquidity rather than long lock-ups. Surveys indicate that 36 % of investors expect private market alternatives to comprise at least 26 % of their portfolios by 2030. 
  • Regulatory evolution: Harmonization of cross-border regulations and new fund structures like European Long-Term Investment Funds (ELTIFs) are broadening access.

Wealth channel growth: Advisors and high-net-worth clients are becoming key drivers of asset flows, with institutional managers launching vehicles tailored to this segment.
These trends collectively make it easier for advisors to discover, evaluate and allocate to alternative strategies while offering clients more flexible terms.

  • Tokenization: By representing ownership of real-world assets (including funds, loans and real estate) as digital tokens on a blockchain, tokenization enables fractional ownership, instant settlement and programmable compliance. The tokenized assets market expanded to about $17.9 billion by March 2025, up from $10 billion in 2024 and major asset managers like BlackRock, Hamilton Lane and Apollo have launched tokenized funds. 
  • Fintech-driven ETNs: Modern ETN platforms use automation to handle structuring, documentation, settlement and reporting, reducing issuance times and costs. They integrate with global custodians and depositories, enabling cross-border distribution through a single ISIN.
  • Digital marketplaces and analytics: Online marketplaces host multiple alternative products with transparent data. Built-in analytics and AI match investor preferences to products, facilitating efficient distribution.
  • Smart contracts and automated servicing: In tokenized private credit, for example, smart contracts automate interest payments and compliance reporting reducing administrative burdens.
    These innovations collectively enhance access, reduce friction and improve transparency in capital markets.

Emerging markets often have varying rules on fund registration, distribution, capital flows and investor protection. Managers may need to register a fund locally, appoint on-shore custodians and comply with local marketing restrictions. Currency controls and tax treaties can further complicate subscription and redemption processes. To overcome these hurdles, managers can issue a cross-border vehicle (like an ETN or feeder that is recognized in multiple jurisdictions) and centralize KYC/AML and reporting. Partnering with a platform experienced in emerging-market distribution—one that coordinates with local regulators, trustees and auditors—helps ensure compliance. Understanding local tax implications and tailoring investor documentation (e.g., providing translations) is also essential. While regulatory fragmentation cannot be eliminated, leveraging a standardized structure and trusted partners reduces time, cost and risk.

Traditional private-markets funds often require large commitments and involve multi-year lock-ups with limited redemption windows. Liquid alternatives—such as listed ETNs, interval funds or tender-offer funds—aim to provide similar exposure with greater flexibility. These products typically:

  • Accept lower minimum investments: opening access to a broader investor base.
  • Offer faster settlement: many settle on a T+2 basis, enabling timely rebalancing.
  • Provide regular pricing and transparency: daily or weekly net asset values (NAVs) allow investors to monitor performance more closely.

Maintain regulated oversight: despite being more liquid, they still operate under a regulatory framework and include independent audits and disclosures.
Investors seeking exposure to private credit or real estate but unwilling to lock up capital for years may find liquid alternatives a more suitable fit.

Sophisticated advisors evaluate managers on more than just performance. Emerging managers should:

  • Demonstrate a clear investment process: articulate their strategy, risk management and edge.
  • Provide a verifiable track record: show audited performance data and back it up with references.
  • Implement strong governance: establish an independent board or advisory committee and appoint reputable service providers (auditors, administrators, custodians).
  • Maintain transparency: deliver regular, detailed reporting on positions, risk metrics and fees.

Communicate proactively: keep advisors informed about material events, market views and portfolio updates.
By combining these elements with alignment of interests (e.g., significant manager co-investment), emerging managers can build credibility with advisors who are accountable to their clients.

Comparing alternatives with traditional stocks and bonds requires a framework that accounts for different risk and liquidity characteristics:

  • Risk-adjusted returns: compute metrics like the Sharpe ratio or Sortino ratio to evaluate return per unit of risk.
  • Correlation analysis: measure how the alternative investment co-moves with equities and bonds to assess diversification benefits.
  • Liquidity horizon: consider how long capital will be tied up and what redemption terms apply (e.g., lock-up periods, notice requirements).
  • Drawdown behavior: analyze maximum drawdown and recovery times during market stress.

Fee structure: compare management and performance fees relative to the potential return and liquidity.
By assessing these factors collectively, advisors can determine whether an alternative adds value to a portfolio and how it fits within clients’ risk tolerance.

Emerging markets often have underserved financing needs and rapid urbanization. Private credit opportunities arise when banks pull back from lending; investors can earn attractive yields by providing capital to mid-sized companies or infrastructure projects. Real-estate opportunities include residential and commercial development in growing urban centers, as well as logistics and industrial facilities tied to e-commerce growth. Infrastructure investments may focus on renewable energy, transportation networks, or digital infrastructure. These opportunities often command higher risk premia but also carry country-specific risks (currency, political, regulatory). Successful participation requires local expertise, thorough due diligence and appropriate structuring (e.g., via ETNs or funds) to mitigate these risks and provide liquidity.

Incorporating environmental, social and governance (ESG) factors into alternatives requires a structured approach:

  • Set clear objectives: Determine whether the goal is to reduce carbon intensity, promote social impact or improve governance standards.
  • Identify material metrics: For each asset class, select relevant key performance indicators (KPIs). For example, emissions and energy efficiency for infrastructure, tenant-wellbeing metrics for real estate, or job creation for private equity.
  • Apply exclusions and screening: Exclude sectors or companies that conflict with ESG objectives and use best-in-class selection to favor leaders within each sector.
  • Integrate into due diligence: Assess ESG factors alongside financial metrics when evaluating new investments.

Monitor and report: Collect data from portfolio companies or assets and report progress to investors. Platforms that provide ESG data feeds and reporting templates can simplify this process.
Integrating ESG effectively can enhance risk management and appeal to a growing base of sustainability-focused investors.

Multiple research sources anticipate substantial growth in private markets over the coming decade. Previn’s Future of Alternatives 2029 report projects that assets invested in alternatives will grow from $16.8 trillion to over $30 trillion by 2030. At the World Economic Forum in Davos in early 2025, Ardian’s executive president noted that private markets AUM had reached about $14 trillion and were on track to grow to $20–$25 trillion by the end of the decade. Survey data from 2025 indicate that 36 % of investors expect private market alternatives to make up at least 26 % of their portfolios by 2030. Key drivers of this growth include greater participation from wealth and retail investors, expansion of semi-liquid and evergreen funds, and the adoption of technologies such as tokenization that lower minimum investments and improve liquidity. These factors suggest that private markets will continue to expand rapidly, offering managers significant opportunities but also increasing competition.

The information provided in this Q&A Hub is for general informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any financial instrument, investment product, or service. Nothing contained herein should be construed as legal, tax, or investment advice, nor as creating any commercial commitment or contractual obligation by LYNK Markets. While the content seeks to explain industry practices and our products in a simplified manner, readers should consult their own professional advisors before making any financial or investment decisions.

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