Fintech News

Cadence Unlocking Private Credit With Launch of Dutch Auction System

Cadence Acts As Sole Structuring Agent On $40 Million Securitization for FAT Brands

Cadence also announces $4 million seed round to fuel its growth

On the heels of unprecedented market volatility, Cadence Group, Inc., a leading fintech securitization platform, announced it has launched a Dutch auction for new investments made available on its platform.

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This auction system, utilized by U.S. Treasuries and other institutional debt markets, allows investors and originators to determine a market-clearing APY that’s desirable for all parties. With the Dutch auction, Cadence is unlocking the private credit market by helping rebalance the risk-reward equation.

The auction system adds yet another layer of transparency to Cadence’s platform, giving investors a direct channel to voice their risk tolerance levels, while ensuring loan originators are given more clarity around the bookbuilding process.

“We believe that in periods of heightened volatility as we’ve witnessed recently, a platform that promotes the value of transparency must step up and introduce innovative concepts that push the private credit asset class forward into the mainstream,” said Nelson Chu, Founder & CEO of Cadence.

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Cadence also announced the closing of a $4 million seed round led by Revel VC, with participation from Morgan Creek Digital, Nimble Ventures, Argo, Tuesday Capital, Manatt, and Recharge Capital.

“We’re incredibly fortunate to have this group of investors participate in this oversubscribed round,” Chu said. “They all come with decades of experience in both financial services and enterprise technology, and they have been instrumental in helping us transform the private credit industry for the better.”

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