KEEPING TRACK OF INVEST-TECH!

!Peter B. Clark CHIEF DEVELOPMENT OFFICER JANUARY 2015!

OVERVIEW – TECHNOLOGY & INVESTMENT TRENDS!

•  Most innovative new businesses leverage technology in some way or other

•  These businesses are being heavily funded, with the majority of venture "capitalists and investors focusing on investing in enterprises with the "greatest potential to drive mass-market adoption

•  Many of these new companies have spun out of California – particularly Silicon"Valley – but other innovation hubs are slowly emerging, generating new "companies leveraging technology

•  Banking and Finance – as sectors – are undergoing gradual yet huge "revolutions as a result of disruptive new businesses that leverage technology. "These businesses are commonly referred to under the umbrella of “FinTech”.

OVERVIEW – INVESTMENT INNOVATION ( I )!

•  Outside of FinTech, new entrepreneurs are beginning to approach the "investment space, offering new business models to radically transform the way"in which investors invest

•  We refer to these new enterprises, which also leverage technology, as "‘Invest-Tech’

•  The majority of these Invest-Tech companies seek to provide their clients with"new technological tools and platforms so as to be better able to do their job –"I.E. invest and make money for themselves or their stakeholders

•  As a result, a lot of these companies aim at reducing needless layers of "intermediation, disrupting traditional asset management by empowering their"clients with the ability to “do it themselves”.

OVERVIEW – INVESTMENT INNOVATION ( II )!

•  These companies, however, are few and far between, and we believe greater"investment must be directed towards funding innovation that transforms "investment practices and processes (see Ashby’s article: http://goo.gl/zS15gY)

•  Existing companies seek to offer investors with a variety resources"and capabilities, such as providing new private platforms to source direct"investments in private or quasi-private markets; new systems to run real-time "scenario analysis; and even new systems to dynamically portfolio manage

•  These companies are the beginnings of a slow trend towards "“re-intermediation” – aka the re-internalization of asset management capabilities"and resources by asset owners and principals, and the re-alignment of external"managers and other market agents.

INVEST-TECH EXAMPLES - ZANBATO!

•  https://www.zanbato.com/ •  Platforms provide clients with access to investment

opportunities, aligned co-investment partners, and a suite of tools to coordinate and evaluate transactions.

•  Zanbato Sutter ATS: Connecting alternative investment opportunities to capital (sellers and investors)

•  Zanbato Private Label: Specialist client-specific networks, allowing for deal-sourcing, due diligence, public-private partnerships

INVEST-TECH EXAMPLES - KENSHO!

•  https://kensho.com •  Kensho harnesses massively-parallel statistical

computing, user-friendly visual interfaces and breakthroughs in unstructured data engineering to create the next-generation analytics platform for investment professionals.

•  Kensho’s computer systems are designed to answer complex financial questions posed in plain English, and in real-time.

INVEST-TECH EXAMPLES - ADDEPAR!

•  https://addepar.com/ •  Interactive investment analysis and reporting technology

data platform •  At Addepar's core is a data aggregation framework that

directly integrates with both internal systems and external institutions.

•  The platform supports robust analysis and reporting with a focus on flexibility, accuracy and security. An integrated set of firm management tools prevent errors and drive efficiency by automating manual workflows.

INVEST-TECH EXAMPLES – ORBITAL INSIGHT!

•  http://orbitalinsight.com/ •  http://www.wsj.com/articles/startups-mine-market-

moving-data-from-fields-parking-lotseven-shadows-1416502993

•  Understanding global and national trends through advanced image processing and data science at petabyte scale

•  Creating market intelligence for decision makers and investors in a wide range of industries

KEEPING TRACK OF TECHNOLOGY!

•  As more and more investment technology companies enter the market, keeping"track of invest-tech trends, and technology trends broadly, will be an important "activity for institutional investors

•  Those investors who are rapidly growing (AuM), often dwarfing their own "domestic markets and requiring access to new opportunities, should keep "abreast of new tools and resources that could improve and enhance"organizational capabilities and abilities to generate long-term financial"outperformance.

•  Although there is no single standard, aggregated information or news platform"providing information on invest-tech developments, or emerging technology"that might be useful to institutional investors, there are ways of keeping track"of new technological developments

KALYTIX OFFERING!

1.  Kalytix provides clients with a quarterly report highlighting new invest-tech "and financial technology trends, including insights on emerging "companies, on a subscription basis

2.  Kalytix can provide clients with access to venture deal-flow to some of the star "invest-tech companies coming out of innovation hubs, including silicon valley, "for a small brokerage fee